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 1, 2012

Analysis of LMIR

Current Price on 30th Apr 2012 = $0.41
  • Current Yield = 6.72%  
  • Price-to-book Ratio = 0.803
  • Assets per unit = $0.685 
  • Debt per unit = $0.174
  • Gearing = 25.4%  
  • Secured Asset per unit = $0.413 (101%)
LMIR has reported its 1Q results which is below my expected yield. In fact, it is way below my expected yield that I think to think seriously whether to offload it immediately. My expected yield was about 9% but it turn out to be only 6.72% which is way below my threshold of 8%.

Price-to-book ratio is at 0.803 which is quite ok but there are REITs like Starhill Global which its properties are based in Singapore and it is trading at 0.75. Even with regards to secured asset per unit, Mapletree Commercial Trust is higher at 105%.

One new insights which I have learnt from CapitaRetail China Trust and LMIR is that you are also investing in its currencies (RMB and Rupiah) respectively. And it should be considered seriously. Portfolio of LMIR decreased in value because of strengthening of Sing dollar.

To be still in profit due to capital appreciation (I bought 70,000 shares at $0.345) is, to me, lucky and is considered a bonus. I am considering whether to offload it because of the yield, or to hold on to it because of its growth prospects.

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