Welcome

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 $3,300/month.

Thursday, August 30, 2012

Analysis of LMIR


Current Price on 17th August 2012 = $0.43
  • Current Yield = 7.35%  
  • Price-to-book Ratio = 0.770
  • Assets per unit = $0.843
  • Debt per unit = $0.285 (include liabilities)
  • Gearing = 33.8%  (include liabilities)   
LMIR is the only Indonesian retail REIT that is listed in SGX. It provides exposure for us to invest directly in the economy of Indonesia.

Current yield is at 7.35% which is currently the highest among all the retail REITs. But it is below my investment criteria of 8%. However, it is trading at a price-to-book ratio of 0.77 which means that we are buying at a 23% discount.

Recently, they are able to raise funds through its MTN which are at quite favourable rates by Indonesia standards. This provides funds for growth which they have planned to do over the next four years. Research reports recently have suggested that there will be one soon i.e. this year.

I am vested with 67,000 shares and is on a "holding" mode. The exposure is quite big already so got to continue to watch the developments closely.

2 comments:

  1. Hi,

    I like your analysis. Neat and straightforward.

    Incidentally, I just sold off Sabana and LMIR (your most recent posts) for some quick profits.

    Will enter again for these two if they should weaken. I just don't feel good about Sabana trading at 1 NAV. :)

    ReplyDelete
  2. Thank you for your kind words... Yes you are right... the weak point for Sabana is its NAV.

    ReplyDelete