S-REIT Investment Blog: Analysis of LMIR

Welcome

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, February 19, 2013

Analysis of LMIR

Current Price on 8th Feb 2013 = $0.52

Current Yield = 5.64%
Price-to-book Ratio = 0.928
Assets per unit = $0.887
Debt per unit = $0.321 (including current liabilities)
Gearing = 36.2%

LMIR has delivered their results just before CNY. Its indicators are still not very strong with only a yield of 5.64%. Current price-to-book ratio is at 0.928 which is also not strong considering that its properties are based in Indonesia. One more thing to note is that Rupiah has been declining, therefore eroding NAV to a significant extent.

I believe that there is room for improvement in its yield to about 6% but that still does not fulfil my requirements of at least 8%. The only good thing about LMIR is that its manager is actively looking for acquisitions for growth and it has been able to buy at discounts to NAV, therefore boosting its NAV value of the REIT.

Nevertheless, it might be time to realize the profit of LMIR and look for other opportunities closer to home (especially when it also commands the same yield).