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, January 12, 2015

Analysis of LippoMalls Trust

Current Price on 8th Jan 2015 = $0.345
  • Yield = 8.00%  
  • Price-to-book Ratio = 0.84
  • Assets per unit = $0.799
  • Debt per unit = $0.388 (including current liabilities)
  • Secured NAV = $0.357 (103% of trading price)
LippoMalls Trust recently went on a yoyo which I have to admit that I missed the fantastic opportunity. It went down to $0.315 (I actually notice it and was considering about it) and went back up at $0.345 again. Haiz. I should have been bold and trust my instinct more.

With the current price at $0.345, it is still attractively priced at 8.00% yield with a 16% discount to NAV. Moreover, its secured NAV is $0.357 which is 103% of trading price. This means that in the worst case scenario, you still get $0.357. 

This year, I am in the process of rebuilding my cash reserve so unless that is a real opportunity like the one earlier, I don't think I am purchasing any investments. Another way is portfolio restructuring to create more value. Currently, I am holding on to AIMSAMP Industrial Trust which I think is quite fully valued already. It still gives me a good return but if there is one attractive opportunity, I will sell and buy (possibly LMIR)

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