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, June 10, 2013

Analysis of LMIR

Current Price on 7th Jun 2013 = $0.495
  • Current Yield = 7.19%  
  • Price-to-book Ratio = 0.868
  • Assets per unit = $0.893
  • Liabilities per unit = $0.323 (including current liabilities)
  • Gearing = 36.2%
  • Secured NAV = $0.402 (81.2%)

There has been weakness in the REIT sector with the impending rise in interest rates. However, there are analysts who are saying that there is an over reaction. Nevertheless, yield has risen and there are opportunities lying around now. One of them, I believe is LMIR.

Its yield is back at 7.19% which is quite high compared to other retail REITs. Moreover, its price-to-book ratio is at 0.868 which means we are getting it at quite a discount. Secured NAV is at 81.2% which provided some security to its trading price as well. Liabilities level is at a healthy 36.2% with low level of debt.

LMIR will continue to grow with the support of its Indonesian sponsor and this trading price is one which is quite low, a level I have not seen for a while. Nevertheless, the market is quite weak now so observing closely to see whether I should increase my holdings. (I haven't sell what I have yet!)

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