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.

Monday, February 20, 2012

Analysis of LMIR

Current Price at $0.39 (17th Feb 2012)

  • Current Yield = 9.74% (Assuming a distribution of 3.75 cents)
  • Price-to-book Ratio = 0.636
  • Assets per unit = $0.785
  • Debt per unit = $0.18
  • Gearing = 22.9% (including other liabilities)
  • Secured NAV = $0.413 (107% of trading price)
LippoMalls Indonesia Trust reported their 4th quarter results which gives 0.53 cents of return. However, the impact of their new acquisition will only be fully felt during this quarter so I am sticking to my previous calculations for my analysis.

LMIR has risen quite a lot since I bought it late last year at $0.345, giving me a strong about 13% return to date. This has boost my confidence in my analysis and methodology in investing REITs. With the current yield at 9.75%, discounted price-to-book ratio and a still high secured NAV of $0.413 (which is above trading price), it is still a good deal compared to other REITs.

The only stumbling block (and will always be) is the location of the investments which is in Indonesia. Indonesia has been doing very well in terms of their economic growth. There is an upgrade of their credit rating to investment grade, and a strong data despite the economic gloom. However, there is always this stigma which will never go away.

I am not too bothered by it actually so if I am extra cash (which I don't have at the moment), this will still be my first choice of investment despite having a big exposure to it in my portfolio. (70,000 shares worth a total of $26,950)

1 comment:

  1. curious to know what figures you used to calculate the PB? Just trying to understand the pb ratio myself