My 2020 Q1 and Q2 Results



Stormy Weather Ahead 

It's been a rough year for my portfolio due to the current coronavirus. The pandemic has adversely impacted stable dividend stocks such as REITs. The total returns I have generated from my portfolio from 2020 Q1 and Q2 is around $600 (1.5%). This was expected due to the circuit breaker measures in Singapore which caused most REITs to cut their dividends to maintain a healthy cash flow and to provide rent relief to tenants. I have faith that the REITs would increase their dividends in the long run when the coronavirus pandemic tides over and more places open up. There are 3 main takeaways for me in this period:

1. Winners and Losers 

This current pandemic showed that hospitality and retail REITs are the most vulnerable to a downturn in the economy. The lockdown measures in various countries caused the revenue for hospitality and retail REITs to decrease sharply as more people stayed at home. As a result, their profits took a significant hit and they had no choice but to cut their dividends to maintain a healthy balance sheet. On the other hand, industrial REITs have been resilient through this coronavirus pandemic and have managed to sustain their dividends. They do not seem to be significantly affected by the changes in the economy and lockdown measures. 

2. Opportunity in every crisis

Healthcare REITs share prices soared during this coronavirus pandemic. Healthcare REITs popularity surged and the demand for them increased sharply. For example, ParkwayLife REIT price dropped to $2.6 before spiking to $3.49. This is understandable as healthcare REITs portfolio mainly consists of medical centres and hospitals which would be high in demand during this healthcare crisis. This shows that opportunity presents itself in every crisis

3. Importance of diversification

This current situation further enhanced my belief of the importance of diversification in any investment portfolio. If my portfolio consisted of only retail and hospitality REITs, my dividends would be even less and I would be in a much rougher spot. I am currently thinking of diversifying out of REITs by the end of the year and including other sectors such as banks (DBS and UOB) to my portfolio. This proves that diversification is able to protect you financially and you should never put all your eggs in one basket. 

What happened to your portfolio during this coronavirus pandemic?

Comments

Post a Comment

Popular posts from this blog

2020 End Of Year Portfolio Updates and Future Plans

Image
Changes to Portfolio  Recently, I have just divested my shares of CapitaLand in my portfolio. I purchased $2600 worth of CapitaLand shares at $2.9 per share before their ex-dividend date in July and sold them in December at $3.25 per share. I gained about 15% ($400), including both capital gains and dividends, from this trade which I am extremely satisfied with. This has been quite a disappointing year for Singapore REITs but 2020 Q3/Q4 has already to begun to show signs of improvement and here's hoping 2021 would be a much smoother year for everyone.  Future Plans   I have around $40k in REITs which I would not touch and just receive dividends passively for next year. On the other hand, I currently have 9,500 shares of Mapletree Industrial Trust at $2.99 per share which I am looking to sell off at around $3.25-$3.3. This would give me a return of around 8.6% - 10.3%. Also, I have another 500 shares of Ascendas REIT at $3.03 per share that I am looking to sell off at $3.3 as well.
Read more

4 Reasons Why Mapletree NAC Trust Is A Good Buy

Image
Mapletree North Asia Commercial Trust is one of Singapore's largest diversified REITs which owns properties for commercial and retail purposes. It is a relatively new REIT that was only listed on the Singapore market in 2013 but has grown rapidly to become one of the largest REITs in Singapore with properties in China, Hong Kong, and Japan. It has been a rough year for Mapletree NAC Trust with the Hong Kong protests causing the closure of their Festival Walk mall in Hong Kong and the subsequent COVID-19 pandemic in China which decreased traffic in their properties significantly. This has caused their share price to fall by more than 20% to the current share price of $0.94. Despite these recent challenges, I still feel that Mapletree NAC Trust is a good REIT to add to your portfolio in the long run. Here are my 4 reasons why Mapletree NAC Trust is a good buy.  Attractive Dividends Mapletree NAC Trust has a 7-year consistent dividend history since 2013. They have been paying out divi
Read more

4 Things You Should Know About AIMS APAC REIT

Image
AIMS APAC REIT is one of Singapore's smaller REITs with a market capitalization of $833 million. It is a relatively young industrial REIT that was listed on the SGX market in 2007. They started with an initial portfolio of only $316 million and has now grown to a relatively large diversified portfolio worth $1.5 billion. AIMS APAC REIT is an industrial REIT that primarily owns industrial hubs across Singapore and Australia. Due to the COVID-19 pandemic, the share price of AIMS APAC REIT decreased from $1.45 to the current price of $1.18. It is one of the less known REITs in Singapore among investors but I feel that it has great potential and great upside. Here are 4 things you should know about AIMS APAC REIT.    Attractive Dividend Yield and 10-year Dividend History AIMS APAC REIT has a consistent 10-year dividend history which is very impressive for a small REIT. This means that they have been paying out dividends to shareholders without fail consecutively for 10 years. This is a
Read more