




-> 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.

Friday, December 27, 2013

Analysis of LMIR - Becoming a leveraged SGD/INR currency play

Current Price on 17th Dec 2013 = $0.40
  • Current Yield = 7.44%  (estimated)
  • Price-to-book Ratio = 0.923 (estimated)
  • Assets per unit = $0.724
  • Debt per unit = $0.291 (including current liabilities)
  • Gearing = 40.2%
  • Secured NAV = $0.325 (81.4%)

LMIR has dropped by a lot to $0.40 recently, partly due to the fact that they went for private placement which decreases their yield, price-to-book ratio and secured NAV. The above data are all estimates.

Do note that the Indonesian Rupiah has dropped by a lot which has affected the valuation of their properties. (http://www.xe.com/currencycharts/?from=SGD&to=IDR). The worse part is that their loans are all in SGD which means increased leverage simply based on currency movements. Thus in my calculations, I factored a 15% discount to its asset values from the latest statements. I have also factored in a drop in the distributions.

Indonesian REITs (Both LMIR and First REIT) are getting more risky to invest simply because of currency plays. I don't think it is worth investing now until the country get their currency right and stable. I was an investor before but sold all of them in October. I prefer Singapore properties currently. (SGD is getting stronger against other currencies so local is still the best)


  1. How does First REIT being affected if their incomes are all in SGD?

    1. Hi WK,

      The valuation of their Indonesian Properties are affected. It is worth lesser in SGD terms.

  2. The NAV will be affected but income should not and thus not affecting distribution. I hope!

  3. hi, what's your opinion on croesus retail trust? it has dropped since IPO and looks like it's at a major support now.

    1. Croesus Retail Trust will have SGD/JPY issues as well... That is my first thought. Will look at it and give an analysis.