Based on my 12 months projected D&I spreadsheet, July is one of those quiet month that I did not expected much income from SGX. However, I have a surprise advance dividend payout from Cromwell and trading gain from portfolio rebalancing which boost my total passive income to above 7K.
In July, I have swapped my preferred BPYPP to its mother share BPY. BPY is a REIT and its parent company is the largest asset management company BAM. The reason for the swap is that preferred BPYPP actually incurred a 30% withholding tax despite being registered in Bermuda. However, its mother share BPY is some sort of LP/REIT that is registered in Bermuda. I have been holding BPY for a while and for some reason , its witholding tax is always less than 10%. Since the yield of BPYPP & BPY is about 6+% , it makes more sense to hold BPY since it has much lower WHT. BPY is one of my top 3 holding and it is the only non-SGX REIT that I can hold without incurring much WHT. I will write about BPY in the future why I like this REIT compare to the SGX listed REIT.
I have also sold off KIM from my IRA account (which I retain from my previous job in US) and the proceed was used to purchased IRM.. Both are REITs. KIM has run up 28% and it is good to take some profit off to purchase IRM which has 8% yield and it is non retail related.
For SGX, I have added 15000 Cromwell at 47.5 cent making it my second largest REIT holding in my portfolio. I like its diversified 100+ European properties. I have also added 15000 Accordia Trust at 53.5 cent as it is one of those REIT listed in SGX that has not run up. I will keep Accordia Trust long term for its 7% yield.
With the rebalancing of my July portfolio, my projected annual yield from my investment portfolio is back up above USD48K .
Dividends received in Jul2019 from Foreign Investment: USD $2188
Interest received in Jul2019 from Foreign Investment (bond): USD $366.28
Interest received in Jul2019 from banks interest/FD/others in US: USD409
Trade gain/loss : USD720
Dividends received in Jul2019 from SGX:SGD$2360
Interest received in Jul2019 from banks interest/FD/others in Spore: SGD$205
Total dividend and interest from my investment portfolio + bank/money market account + trading gain generated SGD 7540.
YTD Passive income earned: SGD $42,547
Dividend/Interest received from investment portfolio:
Investment portfolio distribution:
Monthly Dividend/Interest earned Y-to-Y changes from 2017 to 2019
Nice read, just wondering when are you going to post more on BPY?. I bought into BAM as I like BAM biz model as an alternative asset manager with exposure to global institutional funds (expanding in size due to central banks addiction to QE), earning recurring fees on AUM plus "skin in the game" as the major stakeholder in their various funds.
ReplyDeleteI did not know BPY does not fall under the US 30% wht law, will take a look at it. If its bermuda-based, then wht should be 0%? are there any other reits that fall under the same category as BPY?
It is a reit LP.. There is a tax information from Brookfield website for all quarterly distribution breakdown.. If the distribution is interest payment , there is 25% WHT from Canada. Usually, this is a small component of the entire distribution.. Since I have been holding BPY for 6 quarters, my WHT hardly exceed 3%.
DeleteActually, if you are holding BAM, you should stick with it as I find the total return much better after accounting for capital gain.. There is 15% WHT from Canada but the dividend is around 1+% so the tax is not excessive. BPY is now higher risk due to its mall portfolio from taking over GCP and Forest reits..even though BPY intention was to redevelop the land around those malls.
Niice blog you have
ReplyDelete