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LMIR: An unimpressive 4Q 2012.

Friday, February 8, 2013

I don't have much to say other than how unimpressed I am with the results.

DPU: 0.74c (payable on 5 March)

Gearing: 24.5%

NAV/unit: 56c

Occupancy: 93.5%

The management could possibly work on positive rental reversions for leases expiring this year. They could also try to push occupancy closer to 100%. All these would contribute to a higher DPU.

Please, no more acquisitions at least in 2013. For now, efforts should be on improving the performance of the recently acquired malls.

If there should be any acquisitions and it could happen since gearing is at only 24.5%, I hope that the management will be more careful in their efforts.

Careful? Yes, to ensure that DPU does not get watered down again. This was something I talked about in past blog posts.

LMIR really tests one's patience and the management's record leaves much to be desired.

Related post:
LMIR: 3Q 2012.

See slides: here.


Poh Soon said...

Seeing the unimpressive result, I had queued to sell off most of my LMIR holding @ .525 and .53 separately, which had been filled

AK71 said...

Hi Poh Soon,

Selling at 53c would mean giving up a distribution yield of some 5.58%.

For sure, a 5.58% distribution yield is nothing to shout about but I want to make sure I am able to put the money released to good use.

If I am able to do this, I am considering at least reducing my exposure to the REIT by half.

AK71 said...

OCBC Research is of the opinion that the REIT's efforts to reduce total property expenses by engaging a third party to co-manage its malls would help to improve results in FY2013.

This could help bump up DPU to 3.6c to 4.5c in FY2013.

Do I think this would come to pass? I can only hope that it would.

Poh Soon said...

Obviously current yield is still high compared to bank interest. However, as I still have relatively huge holding on other REIT with yields more than 6% in my perspective. i had deem that it would be a better choice for me to divest most of my LMIR holding.

AK71 said...

Hi Poh Soon,

I am sure you have given the matter much thought and made the best decision for yourself. :)

For sure, there is nothing wrong with locking in gains and beefing up our war chests. We don't always have to think of how to maximise returns.

Thank you for sharing your decision which has given me something to ruminate on. ;)

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