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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 $1,052/month.

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Wednesday, November 14, 2012

Analysis of LMIR


Current Price on 12th November 2012 = $0.48

  • Current Yield = 6.15%  
  • Price-to-book Ratio = 0.896
  • Assets per unit = $0.805
  • Debt per unit = $0.275 (including current liabilities)
  • Gearing = 34.1%

LMIR has reported a set of results which are not too favourable. Its current yield is about 6.15% which is quite low. Its price-to-book ratio is also at a high of 0.896. Considering that they are based in Indonesia, LMIR does not seem great at this price.


One thing to note is that they have managed to raise funds for acquisitions. They paid/are paying the interest for some months before they are able to effect some acquisition. It is not very nice but at least they manage to have some accretive acquisitions which should drive up the yield.

I am looking at a forward yield of 6.65% which is equivalent to the yield of the previous quarter which is slightly better although not compelling. Its price-to-book ratio will also drop 0.824 as they are buying assets at a discount. This placed them 4th behind Saizen REIT (0.56), Fortune REIT (0.74) and Suntec REIT (0.76)

One thing that I almost did was to switch my investment in LMIR to Suntec on Monday. However, I am reconsidering this option until I am very clear that it is a right move. Still thinking and analyzing. Should be making a decision by the end of the month.

5 comments:

  1. Can you comment on DRP?
    Please advice how to get the price-to-book ration and gearing info?
    Thanks - Jonathan

    ReplyDelete
    Replies
    1. Hi Jonathan,

      What I do is to use their trading price and divide it by its NAV. As for the gearing, you may get it from their quarterly reports. For me, I use their liabilities divided by their assets. It will be higher than reported as REITs uses loans/assets instead.

      Delete
  2. Not sure where to post this. Thanks to the originator/author of this whole blog. I find it very useful.
    1 Question - why not include Global Investment Ltd ? Formerly known as Babcock and Brown? Think should meet criteria of below NTA and >8% yield.
    Watchman

    ReplyDelete
    Replies
    1. Hi H WEE,
      Global Investment Ltd is not a REIT so it does not fall under this category. But I do agree with you and is watching closely on this.

      Delete
  3. i'll prefer to invest in suntec reit than LMIR. However, do note that suntec reit's share price has increased substantially in 2012. I would think that suntec's share price has limited upside for now. Unless you want to invest for its yield which is quite attractive. Please visit my blog on my post on reits: www.tradinginthestockmarket.blogspot.com

    ReplyDelete