Oct 2022 Portfolio Allocation
In my previous post, I mentioned that I made some changes to my portfolio. I sold away my profitable growth stocks like Kepcorp, Singtel, AEM ,CapInv. I bumped up on the Prime, United Hamp, Kep Oak CLCT and Elite. So now the allocation looks like this. I wouldn't go into detail in this post why I did it. Just want to have a proper timestamp of my own actions in the future. On top of it, I kept around 100+k cash in my war chest .
I mentioned in my July post that perhaps I should change my name to remove the word REIT since it was almost 50/50 with growth stocks. Now, close to 75% are REITs. So yeah, Ill continue to keep it. Haha.
Did you do anything drastic to your portfolio recently?
What are your thoughts on the recent correction of the REITs prices?
ReplyDeleteI think it is expected since interest rate and dpu of REITs is inversely proportional. However, not all REITs are built the same in terms of their borrowing terms. The more it is on fixed, the more cushion it has in terms of erosion to the DPU. If u ask me when will it bottom out? I have no idea. I will continue to average down on the REITs if the business is still intact and has decent amount of fixed borrowings. If I use united hampshire (in no way is this a recommendation).
DeleteBased on the latest financial report. The DPU is 2.91 cents. Based on today's price. The yield is 10.6%. The sensitivity to interest rate is 0.048 cents in dpu per annum for every 50bps increase in libor. I would still buy the reit even if i factor in another 2% increase in interest from now. The yield is still pretty decent.