I am pleasantly surprised to see LMIR's DPU improving some 20% from 0.74c to 0.89c, quarter on quarter. At the price of 55c a unit, annualised, we are looking at a DPU of 3.56c and a distribution yield of 6.47%.

There is also a new face at LMIR. The REIT has a new CEO, Mr. Alvin Cheng. After many quarters of mediocre performance, I hope that having a new CEO would see the REIT doing better.

As it was revealed that the higher DPU was due to contributions from 6 acquisitions completed in 4Q 2012, any further increase in DPU, barring further acquisitions, will have to come from AEIs, improving occupancy and rental reversions. Efforts under the former CEO had been rather weak in these areas which led me to conclude LMIR was not run as well as it could have been.

I look forward to more good ...

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