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.

Wednesday, April 29, 2015

Analysis of LippoMall Trust

Current Price on 16th Apr 2015 = $0.355
  • Yield = 8.00%  
  • Price-to-book Ratio = 0.80
  • Assets per unit = $0.779
  • Debt per unit = $0.335 (including current liabilities)
  • Gearing = 43.0%
Recently, I am back looking at LippoMalls Trust because it has been steadily moving upwards. Here is the statistics.

Yield is good at 8.00%. Indonesian Rupiah is currently already stable between 9,400 and 9,600. Thus, I thought that the yield and the price-to-book ratio will be quite stable from this point. With price-to-book ratio at 0.80, we are buying at 20% discount which is ideal as a margin of safety for me.

If you notice, recently I have been looking at foreign REITs simply because I am worried about the impact on the impending rising US interest rates. I am believing that the impact will be lesser in other countries than in Singapore because Japan are more active in managing their currency and Indonesia has been doing well as well. These REITs also gives me a large margin of safety by buying at big discounts, reducing risks.

I am not sure whether I am right but these are some risks that I am going to take.

2 comments:

  1. The Sensex ended up 479.28 points or 1.8
    percent at 27490.59 and the Nifty scaled the 8300-level. The 50-share index closed up 150.45 points or 1.8 percent at 8331.95.

    Regards--
    epicresearch.co

    ReplyDelete
  2. I'm vested too with a small holding....

    ReplyDelete