The global stock markets had a rough start in 2020. The on-going geopolitical risk and the Wuhan virus outbreak had filled the headlines in January. The Singapore market (STI) was down by 2.3% on Jan 20. We have done our annual major portfolio rebalancing recently. In January, the portfolio was down by 0.7%. Fortunately, it still managed to outperform the STI.
Dividend wise, we only received one dividend in January, with a total dividend of $607. The annualised dividend yield of the portfolio was about 7.3%.
Moving forward, we would potentially see more merger or consolidation proposal. The larger the REIT, the lower the cost of capital. And of course, the larger REIT will have a higher chance to become a component of the major indices like MSCI and FTSE EPRA NAREIT Developed Market. This will help to improve the liquidity of the REITs.
Besides, with a compressed yield, Singapore REITs will likely to expand overseas, which offer a higher yield in general.
Monthly Education Series
In January, we also launched a new education series on the portfolio rebalancing for our premium subscribers. We will continue to publish monthly short e-courses on REITs investing as well as our investing strategies. Premium subscribers will get the full access for FREE.