Welcome to my investment blog where I share with you my analysis of REITs in Singapore.

I hope that my investment philosophy will bring me a steady stream of income apart from my job. I am aiming for at least $3,000 per month which can sustain the current expenses of myself and my family.

Do enjoy reading my blog and post any comments that you have. I welcome them because it is a time to learn from each other.

When I am looking at investing in REIT, here are some of the guidelines that I am looking at. Feel free to comment on it. I am willing to listen to ideas.

-> at least 8% yield.
-> Price that is lower than its NAV.
-> Low gearing (if possible)
-> High secured NAV.

Current Dividend income is $3,800/month.

Wednesday, July 14, 2010

Statistics on Lippo-Mapletree Indonesia Retail Trust

Current Price on 14th July 2010 = $0.49
  • Current Yield = 9.80%
  • Price-to-book Ratio = 0.591
  • Assets per unit = $1.100
  • Debt per unit = $0.271 (Interest Rate at 3.5%)
  • Gearing = 10.24%
According to my guidelines, LMIR will be a good buy, especially for its price-to-book ratio which represents a significant discount to its NAV. There are some concerns i.e. having assets in Indonesia (same as First REIT). However, I understand that LMIR collects rents in S$ (correct me if I am wrong) and its debts are also in S$. It contributes to stability to the distribution that it gives to its unitholders but prevents us from gaining from the rise in Indonesian Rupiah. It depends on whether you are speculative towards currency but I am fine with the stability of its distribution. Moreover, Lippo and Mapletree are two companies with a reputation to uphold. Again, I am looking for an opportunity to increase my holdings in this REIT

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