Lippo Mall Indonesia Retail Trust - Challenging Time Ahead

Key Highlights:

  • Lippo Mall Indonesia Retail Trust (SGX: D5IU)'s 3Q19 grew 14.3%

  • The annualised yield and price to book ratio are 9.3% and 0.8 respectively

1. Dividends

Net property income grew 11.8% to $44.1m. This was contributed by:

  • Positive rental reversion

  • Stronger IDR currency

  • Collection of service and utilities recovery charges directly from tenants

  • Prudent cost management and improvement on rental collections.

The annualised yield is 9.3%. While the DPU grew in the last quarter, the overall trend is still trending downwards. With the challenging environment ahead, we should continue to see some negative impact on the DPU.

2. Portfolio

The portfolio leverage is currently at the healthy side of 34.7%. The interest cost is at 6.32%,

It is currently trading at a price to book ratio of 0.8.

3. Growth Catalyst