Small tokens of appreciation for readers.

I said I will be sending small tokens of appreciation to readers who bought tickets to a seminar from my blog recently. So far, three readers have contacted me by email but only one has provided me with a mailing address so that I could send out the token by snail mail.

What are these small tokens I am talking about? These:

I took a photo to share the message with everyone reading my blog because I find the message inspirational.

Sometimes, when things look all uphill, remember this. If we believe that we can achieve, we are halfway there. :)

P.S. I am also making a personal offer to pay the readers who bought the 6 tickets through clicking the links in my blog to the ticketing site. Affected readers, please contact me by email.

LMIR: 2Q 2013 DPU 0.93c.

LMIR has delivered stellar results! I am very pleased that its DPU has improved to 0.93c in 2Q 2013. This is 4.5% higher, quarter on quarter. An annualised yield of 3.72c gives us a distribution yield of 7.44% which beats what is offered by retail S-REITs in Singapore including the recently listed SPH REIT.

If I were to invest in a REIT, it should offer me a distribution yield like this. If it should offer me a distribution yield similar to the dividend yield SPH could give me, I won't feel compelled to invest in the REIT.

I also like the fact that the REIT is trading at below its NAV of 57c and that it has a relatively low gearing level of 24.2%.

Can we expect a higher DPU in future? With a new CEO at the helm, the REIT seems to be doing better, achieving  about 15% in rental reversions for expiring leases. Having 8% more leases in its portfolio expiring this year, I certainly hope to see more positive rental reversions. This will marginally bump up DPU by at least 1%, assuming a 15% rental reversion.

There is also a vacancy rate of almost 5%. So, there is space to fill and, proportionally, if we could make a simplistic assumption, we could see a 5% increase in DPU if full occupancy can be achieved with new tenants paying the average rate psf.

Then, there is the matter of debt maturity. Roughly a third of LMIR's debt is due next year in June. I can only hope that they will be able to borrow at a lower rate. If they are able to do this, of course, this should result in higher distributable income.

All in all, rather pleased.

Related posts:
1. LMIR: DPU improved 20%
2. SPH or SPH REIT?

See 2Q 2013 results presentation: here.