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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