facebook(Stocks Discussion) SGX: Lippo Malls Indonesia RETAIL (SGX: D5IU)? - Seedly
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Anonymous

Posted on 21 Feb 2019

(Stocks Discussion) SGX: Lippo Malls Indonesia RETAIL (SGX: D5IU)?

Discuss anything about Lippo Malls Indonesia RETAIL (SGX: D5IU) share price, dividend yield, ratios, fundamentals, and if you would buy or sell this REIT on the SGX Singapore market. Do take note that the answers given by our members are just their opinions, so please do your own due diligence before making an investment in Lippo Malls Indonesia RETAIL (SGX: D5IU).

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Discussion (1)

Sandra Teo

Sandra Teo

Level 11. Master

Posted on 21 Feb 2019

As of Dec 2018, LMIRT has the highest yield (11.289%) across 43 REITs and Proprty Trusts listed on SGX. Despite the downgrade of rating from B2 to B3, LMIRT has been able to manage its debt strategically based on historical data and is highly likely that debt obligations will be repaid fully. This is supported by a good gearing ratio of 33.7%, relatively low compared to MAS regulatory cap for REITs of 45%.

LMIRT's interest coverage (calculated by dividing financial expense by net property income) is within the safe zone of 6 times (5 times is benchmark for safe). However, an increasing concern for LMIRT is its high cost of debt vis-à-vis other retail S-REITs. The REIT has an average cost of debt at 4.7% while other major players such as CapitaLand Mall Trust and Fortune REIT has an average of 3.2% and 2.41% respectively. This high borrowing cost is compensated by its high property yield.

A downside risk for LMIRT is forex weakness which could potentially have an adverse impact when the REIT is converting Indonesian rupiah earnings to Singapore dollars. The depreciation of the Indonesian rupiah caused the REIT's book value to drop to $0.27/unit.

2

Rem Meyro

Rem Meyro

31 Aug 2020

This REIT I think is hit rock bottom in terms of pricing. Despite currency and “Indonesia risk factor” is a buy to me at its current price.

Michaelwong

Michaelwong

17 Sep 2020

LMIR reit have high perpetual securities which may cost dpu to plunge...secondly they are getting asset from sponsor at higher valuation like kemang. This seem like a value trap

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