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- - Portfolio Transactions (December 2021)

Updates for my Portfolio for December 2021

For my side project, I sourcing for certain components but with too many options, things get hard.
My new environment seems to be reasonably paced, been feeling tired because of the shift cycle. Hope to be able to contribute more soon.
  • Buy Digital Core REIT at 0.88 (IPO)
    • Reasons
      • This is not something I would normally do (I would see that it was due to being flushed with cash), I hope I don't regret it. That being said, it is a small position. 
      • DC REIT has 10 freehold properties at expensive markets that is 100% leased to a roster of blue chip customers (probably Microsoft, Cyxtera and Meta).
      • The Sponsor is Digital Realty which is the largest global provider of cloud and carrier neutral data centres, with colocation and interconnection solutions. That allows consistent deployment, operating models while being one company to provide it globally.
      • There is a Right of First Refusal for majority of the sponsor's assets as long it fits the REIT's mandate.
      • Gearing is about 27% which is lower than MIT and Kep DC REIT at 40% and 37% respectively.
      • WALE is about 6 years compared to MIT and Kep DC REIT at 4 and 7 years respectively.
      • Occupancy is currently at 100% but that's probably due to the size versus the other REITs.
      • Like what I mentioned above, the REIT is much smaller than the peers listed here, USD 990M compared to 7180M and 4050M.
      • On the valuation side, DC REIT is being priced at 1.05x PB compared to 1.52x and 2.05x which might suggest some upside.
      • The yield is decent at 4.75% (targeted) compared to 5.05% and 4.19%.
That's all for my money for now.

I have place a small % of my net worth in crypto-assets.

Conclusion

My portfolio YTD is now 41.4%, with the long term XIRR at 12.56%, slightly beating VT's performance, but that's probably due to leverage. That being said, in view of rising interest rates, I might be forced to reduce my leverage.



My cash position is currently at about 7%. Have to wait for cash position to accumulate while waiting.

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