3Q 2021 passive income: Better days ahead?


Time flies and it is time for another quarterly passive income update.

Usually, I publish a quarterly update on the last day of the quarter or within the first couple of days of the new quarter.

However, this quarterly update took a bit longer than usual to produce because I was caught up in some stuff happening in Black Desert Online and Neverwinter. 

In case some think that I was joking, I really wasn’t.

See:
Divdends and virtual worlds.

However, this blog also took a few more days to publish because there were quite a few things I would like to talk to myself about.

So, I took some time off from adventuring in the virtual worlds to blog in the real world.

Anyway, this is going to be a slightly longer blog by ASSI’s standards.

For readers who are used to my shorter (and maybe sweeter) blogs especially the more recent ones, you have been warned.

OK, I think we shall start with Tuan Sing Holdings.




I invested in Tuan Sing Holdings about 4 years ago at 33 cents a share because, after doing some research, I believed that it was very undervalued. 

As I like being paid while I wait for value to be unlocked, being rewarded with a dividend yield of about 1.5% while waiting wasn’t too bad a deal.

In 3Q 2021, Tuan Sing Holding’s share price shot up and the hefty discount to NAV vanished.

Together with this, the chart showed a very overbought picture and the upward movement in price was losing strength.

So, I decided it was time to enjoy the harvest and sold my smallish investment in Tuan Sing Holdings.

The substantial capital gains together with dividends received over the years made this a very good investment.

The money received mostly went to filling my war chest which was drained significantly by IREIT Global’s most recent rights issue.

Readers who are interested in why I invested in Tuan Sing Holdings four years ago might want to read this blog:
Invested in Tuan Sing Holdings.




What surprised me in 3Q 2021 was Keppel Corp’s move to take over SPH.

Totally unexpected.

Each share of SPH would receive $0.668 cash, 0.596 unit of Keppel REIT and 0.782 unit of SPH REIT.

It looked rather messy to me and I would have preferred an all cash deal.

As I already have a relatively large exposure to REITs in my portfolio, I am not too enthusiastic about this unsolicited increase in exposure to REITs.

Anyway, after so many years, it seems that my storied journey with SPH has come to an end.

See:
Investment in SPH is larger now.






I also added to my investment in Wilmar as its share price softened in 3Q 2021.

As Wilmar’s share price formed lower lows, the MACD, a momentum oscillator formed higher lows which gave us a positive divergence which is forward looking.

It suggested that smart money was accumulating on price weakness.

I also reminded myself that earlier in the year, Mr. Kuok paid $4.33 a share and increased exposure by some $10 million.

Of course, in any case, a positive divergence in the chart does not tell us that a strengthening of share price is imminent.

Indeed, we could see a positive divergence dragging out with lower lows in share price and higher lows in the momentum oscillator.

What the positive divergence told us was that shares were changing hands from weaker to stronger holders and that downside risk was reducing as selling pressure was probably easing.

If the positive divergence continues, I would likely add to my investment in Wilmar if its stock should see further weakness in price.

See:
Wilmar was $7.11 a share.




Passive income in 3Q 2021 also benefitted from Accordia Golf Trust’s final distribution.

It was the distribution of residual funds in the Trust before it headed for delisting.

The distribution was relatively small compared to what was distributed after the sale of its assets, of course, but as a proportion of my passive income in 3Q 2021, it was pretty significant.

This is a one off event and 3Q 2022’s passive income will be relatively lower, all else being equal.

Feeling a little nostalgic as Accordia Golf Trust is removed from my portfolio.

See: Accordia Golf Trust: 73.2c offer.




In 3Q 2021, King Wan Corp. announced a 1 for 1 rights issue at 2c per rights share.

In reply to a reader’s comment on the rights issue, I said that King Wan Corp. increasingly looked like a lemon to me as it had not been able do better after so many years.

The rights issue was proposed to strengthen the company’s balance sheet and regular readers would know that I generally do not like such rights issues.

I have written off my smallish investment in King Wan Corp. and, therefore, did not participate in the rights issue.

Of course, this is not the first time I have done something like this.

This is another reminder that, as investors, we make some and we lose some.

As long as we make more than we lose over time, we should do well enough.

See: 

Have a plan, your own plan. 

and 

Getting it right 6x out of 10.




How much did I receive in passive income from my investments in the stock market in 3Q 2021?

$69,145.13

The largest passive income contributor for me in 3Q 2021 was IREIT Global which is, of course, the largest investment in my portfolio as I increased exposure to the REIT during the most recent bear market and participated in its recent rights issues.

Other relatively significant contributors to my passive income in 3Q 2021 were Accordia Golf Trust, AIMS APAC REIT, Sabana REIT, CRCT, Starhill Global REIT, ComfortDelgro, VICOM, OCBC, UOB, DBS and Wilmar.




You might find these blogs interesting:

1. AA REIT and Woolworths’ HQ.

2. Investing with common sense. 

3. Sabana REIT and Wilmar. 

4. DBS, OCBC and UOB.

5. Should we invest in AA REIT? 

Finally, for those who might have missed it, I said this with regards to SembMarine’s latest round of fund raising back in July:

“I am less inclined to pump in my own money at this point into SembCorp Marine as it is anyone’s guess how many years it is going to take for them to generate an income for me. 




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