S-REIT Investment Blog: Analysis of LippoMalls Retail Trust - A way to invest in Indonesia through SGX

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 $3,800/month.

Tuesday, May 10, 2016

Analysis of LippoMalls Retail Trust - A way to invest in Indonesia through SGX

Current Price on 9th May 2016 = $0.325

Yield = 10.22%
Price-to-book Ratio = 0.858
Assets per unit = $0.694
Debt per unit = $0.315 (including current liabilities)
Gearing = 45.4%
Occupancy = 94.7%
Secured NAV = $0.379 (116% of trading price)

LippoMalls Retail Trust has announced their results which I thought was quite good. I tried to enter the market by queueing up but the price went up and I was unable to purchase more shares. Anyway, here are the details.

With a yield of 10.22%, it is the highest yielding REIT in the market. It is at least one percentage point away from the next highest which is Viva Industrial Trust. Moreover, their price-to-book ratio is 0.858 which means we are buying at 14% discount to valuation price. Gearing is at 45.4% with current liabilities and only unsecured debt. This means that their secured NAV is quite high at 116% of trading price. Please note that all assets are based in Indonesia.

Indonesia continues to grow at a moderate pace of 5% which I thought it was nice to be able to participate in their growth. Compared to Singapore where growth is much subdued, it is time to invest in other regions. But I will still invest through SGX. With the current price, I will enter to secure more units soon.