Saturday, May 22, 2010

Purchased some AIMSAMPIREIT

STI went to hit 2676, very near to the 2675 low last hit on 9th Feb 2010. I was contemplating whether to buy in some blue chips to trade, but in the end, I decide to follow my original plan of a dividend portfolio.

I added 25 lots of AIMSAMPIREIT at $0.205 to my portfolio, reaching a total of 70 lots.

My reasons for purchase were that

(i) the gearing is low, (ii) the dividend yield is high, (iii) the properties are all in Singapore except for 1 in Japan, which is a stable country as well, (iv) the price has become more attractive and is still way below NAV, (v) it's a gem which I believe has not warmed up to market's expectations yet, (vi) it has strong sponsors now, (vii) it's leases are longer than its peers, and of higher yield compared to purchase prices, and (viii) 0.205 is a long term support, and buying at this price represents the a very low downside risk, while giving me a nice 10% dividend yield.

With this purchase, my cash level for investing has dropped to about 4.95%, while my average monthly dividends has risen to about $733, with Aztech being the riskiest of the lot at the moment. I did consider Aztech as it would give me an expected 8% yield at current price instead of 7% at my average price, but I'm reluctant to over-expose myself to Aztech at the moment.

I will have to consider how to deploy my remaining funds. In a bear market, I have learned that it's not price actions that make me unhappy, but not having the opportunity funds to buy when it is cheap.


  1. dun think about the yield for aztech my friend. but i gotta say aims is one company i have bad experience with and at a yield of 9% not sure if thats the right price to go.

    I wonder if this is my cognitive bias working against me or that you weren't vested so thats why u see it as an opportunity.

    best regards.


  2. How do you determine your exposure level and do your risk control?

  3. Hi Drizzt,

    AIMS has changed a lot since the previous time. The 8 reasons I listed above are the reasons why I purchased the extra 25 lots, the most compelling being that I believe the downside risks are low.

    My mum too had bad experience, having 2 lots from IPO. However, we must note that the debts are mostly cleared, and AIMS has only 28.9% gearing at the moment, one of the lowest among the industrial REITs. They can potentially gear up to 35%, which can increase the DPU further.

    I had written about this REIT earlier in another post:

  4. Hi cw8888,

    I determine my exposure level by looking at the percentage of my portfolio a particular counter is, and a gut feel of the stability of price actions. As you already know, I like slow moving stocks that give dividends.

  5. Hi Drizzt,

    The bad experience you had, I had too.

    Hi JW,

    The bad experience your mom had, I had too.

    "Human beings remember well things which are particularly unpleasant or particularly pleasant. In short, human beings remember extremes very well. However, as investors, we really have to stay level headed and be in tune with the present, the current reality, and not let the past shackle us."

    Taken from:


    Since the recapitalisation that MI-REIT went through late last year, I have been very vocal about how the renamed entity is a strong buy for anyone looking for a relatively low risk high yielding REIT.

    JW, we buy more if price goes lower, ok? ;)
    Drizzt, join us? ;)

  6. Hi AK,

    I would love it, but my funds are very limited now :x

    I would still love more Starhub, SPH, and perhaps other REITs and equities as well, so I have to think of that too.

  7. I was thinking why not innotek or lee metal. They both have good dividend yield too. around 10-12%

  8. Hi ezinvest,

    I have not the time yet to analyse those companies, that's why. I have heard of innotek, lee metal, neratel and adampak. Will try to find time to look through them eventually.

    Thanks :)

  9. AK71 and JW,

    its bad for me to stick with u guys. you guys very bad influence lol.

  10. Hi Drizzt,

    So, I guess you are joining us? ;-p

  11. Hahaha

    I need more cash funding to be able to load like AK71. If I get to choose my HDB next month, I will need to pay an option fee of $2k via nets first.


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