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1Q 2022 passive revenue: Unhealthy information galore.


Fairly a number of issues occurred in 1Q 2022.

Because the world continues to grapple with variants of COVID-19 with the most recent being the Deltacron or the offspring of the Delta and Omicron variants, Russia determined to start out a battle.

Inflation which was already gaining steam was pushed increased.

The Fed elevated rate of interest and there will probably be extra to come back.

In an inflationary atmosphere, we are going to see rising costs in commodities and we might see corporations like Wilmar doing higher.

In an atmosphere of rising rates of interest, we might see banks doing higher.

and 

For many who are effectively learn, guess the place this passage got here from?





Anyway, common readers know that I did not do a lot within the inventory market final 12 months.

I really feel that, total, my funding portfolio is in fairly good condition.

None of my investments which issues to me is conserving me up at evening.

(Solely Genshin Impression retains me up at evening now.)

Final 12 months, I added to my funding in Sabana REIT in early 2021 after which added to my funding in Wilmar as its inventory worth sank in 3Q 2021.

Nothing else.

So, I did not do a lot final 12 months however what about this 12 months thus far?

Properly, I assumed I would not be doing something in 1Q 2022 as a result of I reasonably appreciated how my funding portfolio appeared.

As I didn’t purchase a lot of something within the inventory market in additional than a 12 months, my money pile has been rising at a gradual tempo which actually is not a foul factor. 




Nevertheless, in the direction of the top of 1Q 2022, I made a decision so as to add to my funding in Centurion Corp.

My funding in Centurion Corp. was already very substantial and I actually should not be including however I simply could not resist it.

So, I suppose AK does not have as a lot character as he thought he had. (TmT)

There may be solely a small handful of people that every has 1 million or extra shares of Centurion Corp. and if I’m not cautious, I’d be part of their ranks.

Previous to 1Q 2022, the final time I added to my funding in Centurion Corp. was in 2020.

I ought to say “the previous couple of occasions” as a result of my information, there have been a number of entries made at 32c a share in 2020.

Why could not I resist including to my funding?

OK, I had a chat with my bowling ball and it had a number of issues to inform me.

Centurion Corp. has weathered the pandemic effectively and has stayed worthwhile regardless of the challenges.

This speaks volumes.




Properly managed and resilient, Centurion Corp. is paying dividend once more.

Though it’s simply 0.5 cent per share, my bowling ball informed me that they may have simply paid 2 cents per share.

Actually?

See:


If we have a look at the numbers, internet working money not solely recovered however exceeded pre-pandemic degree.

Centurion Corp. was paying 2 cents dividend per share previous to the pandemic.




Then, why solely 0.5 cent dividend per share now?

My bowling ball was silent on this.

If I had been to make a guess, they’re most likely being cautious which is not a foul factor, particularly in the event that they plan on paying down debt within the face of rising rates of interest.

Taking a look at their monetary assertion, Centurion Corp. lowered borrowings final 12 months when dividends had been suspended.




After all, if they’ve recognized new companies which might generate extra revenue however wish to draw on inner sources as an alternative of debt, it is not a foul thought both.

Centurion Corp. ought to pay a bigger dividend to shareholders in the event that they don’t have any higher use for the cash readily available.

Centurion Corp. has recovered effectively and appears to be as useful an organization at this time because it was pre-pandemic.

In truth, if we have a look at the NAV/share, it’s a lot increased than it was pre-pandemic which means that Centurion Corp. is much more useful at this time.

For the remainder of the 12 months, we might see Centurion Corp. doing higher as Singapore eases border restrictions and extra overseas staff return.




We will anticipate the occupancy of their dormitories for college kids within the UK, Australia and USA to do higher for the remainder of the 12 months too.

Their scholar lodging belongings within the UK have already seen a giant enchancment in occupancy.

Whereas the value of its inventory languishes whilst issues enhance, it looks as if an excellent alternative to extend my funding in Centurion Corp. and at an even bigger low cost to NAV too.


Centurion Corp. is undervalued however it might keep undervalued for a very long time.

It would take some time however I wish to assume that persistence will probably be rewarded.

UOB Kay Hian analyst Adrian Loh has stored “purchase” on Centurion with the next goal worth of 45 cents from 43 cents beforehand.”  Supply: The EDGE.

Now, time for my passive revenue numbers.

In 1Q 2022, the three largest revenue turbines for me had been:

1. IREIT World

2. AIMS APAC REIT

3. Sabana REIT

Complete passive revenue acquired in 1Q 2022:

S$ 40,697.68

In 1Q 2021, my passive revenue was $36,551.14 and that was some 48% increased than it was in 1Q 2020 resulting from bigger investments made in Sabana REIT and IREIT World.

So, the truth that 1Q 2022 passive revenue was some 11% increased than it was in 1Q 2021 makes me very joyful and the larger quantity is due to IREIT World’s stellar efficiency.

I like investing in good revenue producing belongings.

I like investing in them particularly if they’re undervalued.




IREIT World not solely generates good revenue for me, the REIT can be financially robust which provides me peace of thoughts:

From the numbers, to me, IREIT World is clearly undervalued.

I’ve many blogs on IREIT World and in case you are , use the Search operate on the high of the online model of my weblog to seek out them.

There will not be any revenue distribution from IREIT World and Sabana REIT in 2Q 2022 however DBS, OCBC and UOB needs to be paying dividends then.

It will likely be attention-grabbing to see if my passive revenue improves 12 months on 12 months in 2Q 2022 because the banks had been nonetheless paying decrease dividends in 2Q 2021.




1Q 2022 was stuffed with unhealthy information and, for me, passive revenue was a vivid spark amidst all of the doom and gloom.

If we maintain a comparatively diversified funding portfolio of bona fide revenue producing belongings, we should always get pleasure from some peace of thoughts even because the world appears greater than a bit tousled.

Maintain some funding grade bonds too and common readers know that the CPF does that for me.

I remind myself that I can solely do what I really feel is correct as I preserve my ft firmly on the bottom and never chase the most recent get wealthy fast concepts.

If I’m able to develop my wealth slowly as a retiree who relies upon solely on passive revenue to satisfy all my monetary obligations, I’m joyful.

Make investments extra.

Speculate much less.

For positive, I wouldn’t have all of the solutions and I can solely hope for the very best.

That is all for now.

Until the following weblog, keep secure.






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