老查理的投資札記

Given the the counterparty risk of FIRST REIT (more than 80% rental revenue is from the sponsor, PT Lippo Karawaci), I've cut 2/3 of my holdings and reduced my exposure to FIRST REIT. I am still bullish on FIRST REIT. Given the sponsor's cash position and liquidity issues, it is better to be prudent and keep a peace of mind. 

The sponsor has significant USD-denominated debts, which is negative to the depreciating Indonesian Rubiah against USD. The sponsor also has other businesses that need capex to grow. Not an ideal situation to bet on REIT yields, which is interlinked to the sponsor's credit situations in the current market environment. Luckily, AREIT's price dropped as a result of the private placement, creating an opportunity to add more units. AREIT has a capable team, proven execution capability and a wild number of tenants in the industrial, business centers. 

I added one new counter, Keppel DC REIT, speicilized in data centers. The long-term nature of the bsuiness ensures yield visibility. This REIT is still on an aggressive growth path with relative low yield of 5%. Growth outweighs yield for now.