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.

Thursday, May 17, 2018

Analysis of LippoMall Indonesian Trust - Not trusting myself

Current Price on 6th May 2018 = $0.32
  • Yield = 8.38%  
  • Price-to-book Ratio = 1.025
  • Assets per unit = $0.708
  • Debt per unit = $0.396 (including current liabilities and perpetual securities)
  • Gearing = 55.9%
  • Occupancy = 94%
LippoMalls Indonesian Trust is one which is probably the worst performing REIT that I have seen. In my last analysis, I was thinking whether to offload them but did not do it. Thus, I regret my decision or indecision that I have made. Let's take a look at the statistics now.

Yield is at 8.38% which is still quite high compared to other REITs. However, with the recent pull-back, there are REITs which are trading at similar yields. Their valuation is also still low so price-to-book ratio is at 1.025 which means we are buying at a slight premium to their valuation. Gearing, if you include perpetual securities apart from debt, is quite high at 55.9%.

One thing about LMIR is that we are subject to Indonesian regulations and also currency risk, both which work against us this round and it will take a while for LMIR to turn it around. As I have said earlier, I regret not selling earlier and I am holding just to hope that it will continue to hold and move back up. However, looking at the statistics, I still think it is fairly valued and probably there is only value in holding on. I am vested with 30,000 shares, and I am still observing whether I should unload and switch to another counter. I just hope that I am right this time.

1 comment:

  1. I have vested 20,000 shares with average price at 0.41….dun know if it would keep dropping…me as well, I just hope that I am right this time.

    ReplyDelete