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LMIR: 3Q 2012 DPU 0.73c.

Sunday, November 11, 2012

A reader sent me an email and asked if I would be writing about LMIR's 3Q 2012 results. I admit that I was wondering if I should just skip it this time.

LMIR announced a DPU of 0.73c which is lower than the 0.79c declared in 2Q 2012. This is despite the fact the distributable income improved 37.9%, year on year.

In my blog post on the REIT's 2Q 2012 results, I was optimistic that the REIT's DPU would improve further as its gearing of 9.3% meant that it had plenty of debt headroom for yield accretive purchases. However, the management has squandered the enviable low gearing level as a slew of recent acquisitions were DPU dilutive in nature. Post rights, I estimated a DPU of 0.815c and it does not look like it is going to happen anytime soon.

Unless unitholders were active in acquiring nil-paid rights as they were sold down to 2.1c, I believe we were better off pre-rights compared to post-rights. Pre-rights, we were enjoying quarterly DPU in excess of 1c and unit price was very much the same level as it is now. Those of us who bought into the nil-paid rights cheaply would have made capital gains of between 20+% to 40+% in less than a year, excluding income distributions received in the same period. Those who did not do so are not any better off.

Only time will tell us the quality of a REIT's management and LMIR's has disappointed so far.

See 3Q 2012 financial statements: here.

Related posts:
1. LMIR: 2Q 2012 DPU 0.79c.
2. LMIR: More acquisitions and lesser DPU again.
3. LMIR: More benefits from acquiring 4 malls?


Poh Soon said...

It seems MR market had viewed the LMIR result positively. Thus, i'm not going to complain although a bit of dissapointed with the latest quarter's dividend

AK71 said...

Hi Poh Soon,

There are many things we can complain about. Depending on our position on an issue, someone's complaint might not have any impact on us. ;p

SnOOpy168 said...

They passed the resolution for the acquisition of the 2 malls today.

Astonishing 99.79% voted for. Someone is knowing or reading into something, which we missed ? Or it is just rubber stamping.

AK71 said...

Hi SnOOpy168,

For the sake of my passive income from S-REITs, I hope they know something I don't. Hahaha.. ;)

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