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 $4,200/month.

Monday, February 23, 2015

Analysis of LippoMall Retail Trust

Current Price on 16th Feb 2015 = $0.35
  • Yield = 8.11%  
  • Price-to-book Ratio = 0.789
  • Assets per unit = $0.779
  • Debt per unit = $0.335 (including current liabilities)
  • Gearing = 43.0%
  • Secured NAV = $0.444 (127% of trading value)
LippoMalls Retail Trust has recently reported their results which are quite favourable and prompts me to think through my strategy again.

Their yield is currently at 8.11% which is one of the highest. Moreover, their price-to-book ratio is one of the lowest at 0.789 which means I am getting properties at 22% discount. The most important thing is that their secured NAV is at $0.444 which is higher than the trading price. In fact, 100% of their properties are currently unencumbered.

I have read an article which discuss about the recent bond which will mature soon and they haven't quite resolve the issue yet. It is a $200 million MTN due in July 2015. This is a concern and helps to depress the trading price. But I am quite sure that it will be resolved soon because they do have a strong sponsor i.e. Lippo which is the larger developer in Indonesia. Indonesia economy has also been doing well with strong domestic demand.

I am in the process of waiting for some of my money to be routed back to me and I will purchase this once I get it back. I won't be able to reach the dividend in time but it may not be a bad thing.

3 comments:

  1. Hi jc,

    Based on the 4Q 2014, the gear is reported 31.3%. I don't think is 43%.

    I'm also waiting for price to depress before accumulating.

    Happy Lunar New Year to you!

    Regards
    Derren

    ReplyDelete
    Replies
    1. Hi Derren,

      I have included the other liabilities other than debt.

      Regards

      Delete