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Another quarter has gone by and it is time for another update.<\/span><\/p>\n For a change, I will reveal the numbers first.<\/span><\/p>\n 3Q 2024<\/b> passive income: This is a slight reduction, year on year, as 3Q 2023<\/b>\u00a0passive income was: Almost negligible difference but it is still a dip.<\/span><\/p>\n The reason for this is the much lower contribution from Sabana REIT which I drastically reduced exposure to.<\/span><\/p>\n The REIT was one of my largest investments but this is no longer so.<\/span><\/p>\n Losing one of my largest investments is bound to have a big impact on my passive income.<\/span><\/p>\n However, as the title of the blog suggests, thanks to higher dividends received from my investments in the banks, the impact is mitigated.<\/span><\/p>\n The money from the sale of Sabana REIT was used to strengthen my T-bill ladder which is, of course, my war chest.<\/span><\/p>\n I am in no hurry to deploy the money since I am already substantially invested in the stock market.<\/span><\/p>\n Looking at the investments which contributed the most to my passive income in 3Q 2024:<\/span><\/p>\n 1. OCBC<\/b><\/span><\/p>\n 2. DBS<\/b><\/span><\/p>\n 3. UOB<\/b><\/span><\/p>\n No surprises here since OCBC is my largest investment at almost the same size as my investments in DBS and UOB combined.<\/span><\/p>\n DBS is going to generate more passive income for me because of the bonus issue which in effect gives a 10% uplift to dividends received.<\/span><\/p>\n UOB is, well, UOB.\u00a0<\/span><\/p>\n Conservative and plodding along but still more than decent enough return.<\/span><\/p>\n In a recent video, I said I would not be adding to my investments in the banks as their share prices hit all time highs.<\/span><\/p>\n I would wait for a pull back in prices before adding.<\/span><\/p>\n To be fair, at 1.2x or 1.3x book value or so, the common stock of OCBC and UOB do not look expensive.<\/span><\/p>\n So, if I were not invested in the local banks yet, those would be where I put money to work first.<\/span><\/p>\n 4. IREIT Global<\/u><\/b><\/span><\/p>\n In a recent reply to a comment on the REIT, I said this:<\/span><\/p>\n “IREIT’s Berlin property will be vacant for 12 to 18 months very soon.\u00a0<\/span><\/i><\/p>\n No income to be generated by that asset then.\u00a0<\/span><\/i><\/p>\n So, expect income to be impacted.\u00a0<\/span><\/i><\/p>\n There is also the point that you (the reader) raised and it is a point I have made many times with regards to REITs.\u00a0<\/span><\/i><\/p>\n They will be refinancing in a higher interest rate environment although as many as 6 or 7 rate cuts are coming by end of 2025.\u00a0<\/span><\/i><\/p>\n I made a video almost a year ago to talk about all these and said I would not be adding to my investment in IREIT unless unit price went down much lower.\u00a0<\/span><\/i><\/p>\n Still, there were readers who added at between 32c to 36c per unit.\u00a0<\/span><\/i><\/p>\n To be fair, it isn’t just IREIT, I am not interested in putting more money in any REIT now.\u00a0<\/span><\/i><\/p>\n My recent video on banks and REITs made this very clear.\u00a0<\/span><\/i><\/p>\n My focus is on income and valuation, not so much the prices.”<\/span><\/i><\/p>\n I recently did a podcast with The Fifth Person and there was a segment on whether banks or REITs are more attractive as investments for income.<\/span><\/p>\n In case you are interested, here is the video:<\/span><\/p>\n
$85.223.17<\/b><\/span><\/p>\n
$85,307.78<\/b><\/span><\/p>\n
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