Initiated Position in Ascendas REIT and Dividend Collected (October 2019)

Dividend Collected 2019

Dividend collected for the month of October 2019: $878.30

• OCBC BANK
• TEMASEKB231025
• IS USD ASIA BOND
• IS US ASIA HYG

Dividend Collected to Date

Dividend (YTD): $13,419.00

Average Monthly Dividend (YTD): $1,341.00

Total Dividend Collected to Date: $88,274.89

Dividend by Month (Since inception)

The sky is falling! The sky is falling! The last trading day of the week was a scare as REITs retracted. There was no major negative news and the fall relative to the STI seems to be much more. Could the fall be attributed to just a broad bear day in the market? Could this be a sign of a reversal for REITs or is it just a profit taking period? I do not know and will not speculate. I am not taking any actions at the moment as dividends are still coming in.

Separately, I initiated a small position in Ascendas REIT before CD/CR. Ascendas REIT was one of the REITs which I had always wanted to add but the price just keeps going up. I see the rights issue as an opportunity to start investing in the REIT. I bought a small specific amount of shares such that I could get the most rounding rights. I will be exercising the rights and applying for as much excess as possible when the application is opened. I do not intend to trade any rights over the open market as it incurs commission fees and probably there won't be much bargain in buying the rights from the open market.

Although I am now sitting with an unrealized loss after XD/XR, I am expecting that my average purchased price will be lowered after exercising the rights with excess. The more excess rights I get, the lower the average purchased price. In any case, the average purchased price would be lower compared to the price prior to the announcement of rights issue, which is why I see it as an opportunity to initiated a position in the REIT. Whether the price of the REIT would go up or down after the acquisitions would be anyone's guess. 

Disclaimer: This post is not a recommendation or call to buy.

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