- Yield = 9.3%
- Price-to-book Ratio = 0.887
- Assets per unit = $0.702
- Debt per unit = $0.33 (including current liabilities)
- Gearing = 47.0%
Yield is at 9.3% which fulfill my 8% yield criteria which is good, Price-to-book ratio is at 0.887 which means we are buying at 11% discount for this portfolio of properties. Just note that they are all Indonesia-based where the exchange rate fluctuates so the NAV also fluctuates. Gearing is at high of 47.0% which to me, has room to be brought down.
LMIR has a put option which I think they may choose not to exercise as the selling of the property to pay debt does not seem to be a good choice (infer from their announcements). They are trying to extend the put option so that the necessary admin procedure can be done in due course. Well, let's see what they do and react from there but there is one thing that I know. Price is not going to go up very much.
I am vested with 30,000 shares which I am still holding on. I bought at a high price so sitting at a paper loss but I am thinking of selling it. Seems too unstable for comfort.
Hi Thanks for the analysis. But I say that we did not buy at today price, so yield of 9.3% must take consider of paper loss. So, why the price has dropped ? Very simple. It is not only exchange rate, which is they want the small investors believes. It is very clear from the very high account receivables that something is wrong from the tenants. But we have a chance to get some compensation for maybe permanent loss, is to exercise the put option and get money back. I think they can rep[ay debt and do special dividends same as First REIT ?ReplyDelete
One thing I noticed LIMR was whenever it issued new units the shrare price dropped. At the end after subtracting the dividends received still lost money.ReplyDelete