LMIR: 4Q FY2010 results.

I could take my last blog post on LMIR, substitute some numbers and that's the end of it. There is really nothing exciting or new to say about this REIT. It also continues to disappoint in its lacklustre distributable income. Let's give it a try. See changes in bold dark blue color:

Distributable income at $12.029 million. DPU at 1.11c is higher than the 1.09c in the last quarter. This represents a marginal increase of 1.8% over the previous quarter.

Unfortunately, the management lost $2.3m in foreign exchange forward contracts. Without these contracts, the distributable income would increase by 19.18%!

OK, that was easy. Some numbers:

Gearing: 10.3%
NAV/share: 83c
DPU for FY2010: 4.44c

It is interesting how the management left out the DPU for FY2009 in its presentation slides which was 5.04c and that happened on the back of much lower revenue of $85.758m. Gross revenue bumped up 50.9% in FY2010 and yet the DPU reduced by 12%. Am I missing something here? Great potential but a poor management? A rhetorical question, perhaps.

Borrowing the words of OCBC Research:
The manager attributed (the falling income distributions, year on year) to the appreciation in the IDR, which has caused the gap between the hedged rate on distributions and the physical rate to reverse unfavorably...

Still, it is a rather safe investment for anyone who is investing for income. This is its only redeeming quality.

Read announcements:
Unaudited financial statements.
Presentation slides.

Related post:
LMIR: Foreign exchange forward contracts.