Current Price on 10th October 2012 = $0.455
- Current Yield = 6.98%
- Price-to-book Ratio = 0.798
- Assets per unit = $0.855
- Debt per unit = $0.285
- Gearing = 33.3% (including current liabilities)
- Secured NAV = $0.411 (90%)
LMIR has released a report on their potential acquisition today with some details. Again, they are buying assets at a discount which has always been the case for Indonesian properties. Here is the analysis.
Yield increased by a little bit only since they say that the increase is only 0.5%. It is quite insignificant. Next, its NAV value and secured NAV increases by $0.011 which is about 2.5%. Again, this is quite a small increase. Overall, I think the effect is not really significant.
A strategy that they are employing (which I see here) is that they have raised Singapore Dollar Notes to buy Indonesian properties. I think this is a bit dangerous as they are exposed to S$/IDR fluctuations. If Indonesia Rupiah drops, the impact is greater than expected. Probably this is the reason why it is trading at such a discount.
I am vested with 67,000 shares and will be looking closely at this. If need be, I will offload at the right price.
Yield increased by a little bit only since they say that the increase is only 0.5%. It is quite insignificant. Next, its NAV value and secured NAV increases by $0.011 which is about 2.5%. Again, this is quite a small increase. Overall, I think the effect is not really significant.
A strategy that they are employing (which I see here) is that they have raised Singapore Dollar Notes to buy Indonesian properties. I think this is a bit dangerous as they are exposed to S$/IDR fluctuations. If Indonesia Rupiah drops, the impact is greater than expected. Probably this is the reason why it is trading at such a discount.
I am vested with 67,000 shares and will be looking closely at this. If need be, I will offload at the right price.
Hi
ReplyDeleteI just found your blog today. Looks to be a real resource for someone like me who is just getting into reit investing.
With so much info, why do I start?
Cheers
Aaron
Hi Aaron Chua,
DeleteIt is important to know your own investment philosophy and criteria which you will try to follow religiously i.e. what I have in my first paragraph.
After that, do look through my blog to see which suits your needs. I don't really post a daily update so you got to check out reitdata.com for more information.
Hope it helps.
The price now is 0.490. Do you think it's overvalued?
ReplyDeleteHi Ryan,
DeleteIts price seems very high but it is still trading at a discount to NAV aka more than what they are spending on their properties which is usually about 20% to NAV.
Moreover, its yield is still one of the higher ones we can find among the Retail REITs.
I am holding on to mine.