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.

Tuesday, August 11, 2015

Analysis of LMIR - more of a S$/IDR currency play than REIT

Current Price on 8th Aug 2015 = $0.36
  • Yield = 8.11%  
  • Price-to-book Ratio = 0.916
  • Assets per unit = $0.73
  • Debt per unit = $0.337 (including current liabilities)
  • Gearing = 46.2%
  • Credit Rating = Baa3
LippoMalls Retail Trust recently reported their results which was less than normal. They have been great in INR terms but the currency losses have been significant.

Their yield is currently at 8.11% which was below expectations. Moreover, due to S$/INR, price-to-book ratio increases because assets values drop and now it is in 0.916. Both are although achieving my expectations, were found to edge closer to my criteria. The only positive is that they have obtained a credit rating and they are now investment-grade.

LMIR is more of a currency play than a REIT because of the large fluctuation (and mainly drop) of S$/IDR. Oh well, I actually know of this risk when I purchase 30,000 shares and was thinking that Indonesia economy is going to do well. Looks like they needed more time. I am sitting at a paper loss but I am ready to hold on to long term.

*Updated to change from INR to IDR... My careless error... Thanks my readers who pointed it out**

3 comments:

  1. Correction: Currency stated should be IDR (Indonesian Rupiah) instead of INR (Indian Rupee)

    ReplyDelete
    Replies
    1. Oops! Haha! You are right! Will change it :-) Thanks!

      Delete
  2. If currency is the only problem then limited risks for the long term. The hidden and biggest problem is the Sponsor which supply the portfolio and manage the portfolio. That is why NAV will continue to drop and we are all suckers.

    ReplyDelete