- Do nothing.
- Sell everything.
- Sell some of it.
With First REIT hitting historical high, there are three actions I can take:
is this your largest position? great returns and show that you are an astute investor.
one question why stay above 1.27? i don’t get that part. how many lots did you hold in the first place?
Hi Drizzt,
First REIT is my largest holding in my portfolio base on the share price but not the largest in terms of capital injection. So while this stock is doing well, my entire portfolio is not fantastic.
I have ten lots of First REIT. I’m calculating how many lots to sell to recoup my initial investment. At $1.27, I will have to sell 5 lots. Any lower and I have to sell 6 lots. To sell 4 lots to recoup my initial investment, the price will have to be $1.59 – highly unlikely in the wake of bloody Thursday.
Cheers!
To do nothing/ sell all/ sell some are all based on a pure mathematical formula based on hypothetical assumptions.
The key reasons that First Reit is able to trade at more than 1.6x book value (probably the highest amongst S-Reit) and probably drove the returns on your holdings, are the fundamental aspects of the REIT, i.e. being in healthcare, in booming underserved Indonesian market, rental structure, active sponsor, lower asset capitalisation values etc. Might be worth having your decision be more dependent on the fundamentals of the REIT.
Hi my fellow First REIT Investor,
While I can look at the numbers, future performance is also based on hypothetical assumptions. Gearing ratio, book value etc also depends on every individual risk appetite. While I’m pretty sure the fundamentals is good, I believe the price is inflated because REITs are the ‘in’ thing now.
Again these are my assumptions with nothing to back me up. Thanks for the timely reminder. I’m going to dig out my Peter Lynch book and dive down into the numbers.
Care to share on your plans for First REIT?
Cheers!