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.

Saturday, April 30, 2011

Analysis of LMIR

Current Price on 21st Apr 2011 = $0.56
  • Current Yield = 8.36%
  • Price-to-book Ratio = 0.645
  • Assets per unit = $1.156  
  • Debt per unit = $0.289
  • Gearing = 25.0% (Include other liabilities)

LMIR has recently reported their latest report which gives a current yield of 8.36% which fits my criteria. Moreover, the price-to-book ratio is still a favourable 0.645 which represent a discount to NAV. This might be attribute to the fact that its assets are in Indonesia. 

One thing to note is that its debt interest rate is very high at 7.8%. This is very unfavourable and probably a stumbling block for further accretive acquisition. I believe this need to be reduced to an acceptable level. First REIT, another majority-Indonesian REIT, has a unknown floating rate which I believe is more favourable (due to the fact that it is trading closer to NAV level)

I have 10,000 shares in this REIT and I believe that this REIT has potential at current price level. Just that the yield is very close to my 8% threshold. So I will be thinking of offloading at $0.585.

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