LMIR: 3Q 2012 DPU 0.73c.

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?

Build a bigger retirement fund with CPF-SA (UPDATED).

Young working adults could use their CPF-SAs to grow their retirement funds, risk free, at a faster clip.  

This is a valid and relatively fuss free approach to long term wealth accumulation.

If you think that the additional 1.5% per annum paid on the CPF-SA does not amount to much, I would encourage you to read a blog post of mine written more than two years ago. 

In the last few paragraphs, I explained how transferring funds from CPF-OA to CPF-SA could significantly boost returns.

See: 
Do you want to be richer?





The additional 1% interest paid annually on the combined first $60K in our CPF accounts is another strong incentive for us to use our CPF accounts to grow our retirement funds.

If you are interested to know more, go to the comments section of the blog post:

Want to be wealthier without higher risk?

For risk free, long term savings with significantly higher returns, the best option for average Singaporeans is still the CPF-SA.






Other related posts:
1. SRS, CPF-OA and CPF-SA.
2. SRS: A brief analysis.