- Current Yield = 7.61%
- Price-to-book Ratio = 0.91
- Assets per unit = $0.804
- Debt per unit = $0.323 (including current liabilities)
- Gearing = 40.2%
- Secured NAV = $0.362 (82%)
LMIR has dropped by quite a lot this month due to falling Indonesian Rupiah and uncertain Indonesian Economy. Therefore, my analysis above has factored in a 10% reduction in its assets, yield and secured NAV.
The yield is still at 7.61% which is still higher than Indonesian Central Bank's rate at 7%. This means that the difference between risk-free rate and LMIR is actually very small. There are news that they are raising interest rates soon which could help to stabilise the rupiah, thus protecting LMIR in some sense. But I am not too sure whether valuation will drop because of it as well.
LMIR is still trading at a discount to NAV but the revised rate is at 0.91 which is not very attractive considering the location. Gearing is creeping up which pose a risk.
I am vested with 114,000 shares which is quite a lot to me. I intend to ride it through this difficult period with them, believing that things will turn for the better with the rising middle class.
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