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.

Sunday, February 20, 2011

Analysis of LMIR

Current Price on 18th Feb 2011 = $0.56
  • Current Yield = 7.93%
  • Price-to-book Ratio = 0.667
  • Assets per unit = $1.128 
  • Debt per unit = $0.289
  • Gearing = 25.6%
  • (Above valuation excludes CPPU)
LMIR is another REIT based in Indonesia (other than First REIT) which is also controlled by Lippo. On the whole, it offers high yield which is good (close to 8%) and its price-to-book ratio is well below 1.00 which means that it is selling at a discount. According to my criteria, it would have met all the criteria. (I have 10,000 shares)

According to my calculations, the gearing is 25.6%, contrary to their reports which is 10.3%. I have taken into account "other liabilities" which I believe will have an effect on their balance sheet and their plans to work on enhancement of properties and/or acquisition.

I still believe that this REIT is good and offers good value. I am awaiting more details of their plans to enhance shareholder value via organic growth.

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