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 8, 2015

Analysis of LippoMall Retail Trust

Current Price on 31st May 2015 = $0.375
  • Yield = 8.43%  
  • Price-to-book Ratio = 0.893
  • Assets per unit = $0.736
  • Debt per unit = $0.316 (including current liabilities)
  • Gearing = 43.0%
It took me a while to look at this counter and I have to admit that when they release their results, I haven't had time to see this. Once I see it, then I realize what an opportunity missed. The data were (and is) still excellent.

Yield is currently at 8.43% which is very high, probably one of the highest we can find. The one which is probably higher than LMIR is Viva Industrial Trust which is currently at 8.9%. Price-to-book ratio is also great which is 0.893. This means that we are buying it at about 10% discount. And this is better than Viva Industrial Trust which is trading at a premium. Gearing is at 43.0% and this includes all other liabilities other than debts.

LippoMall Retail Trust has been delivering results time and again and I just wonder why I did not have any investment in this. I was waiting for Sabana REIT to drop further and enter but with this analysis, I will switch my focus and will wait for an opportunity to enter this. The price of $0.375 is still ok. Just that I regret missing the rally.

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