|
| |
Overview
Headlines
Business Background LMIR Trust is a Singapore-based real estate investment trust established with the principal investment objective of owning and investing, on a long-term basis, in a diversified portfolio of income-producing real estate in Indonesia that are primarily used for retail and/or retail-related purposes. LMIR Trust’s current asset portfolio comprises 23 retail malls (“Retail Malls”) and seven retail spaces located within other retail malls (“Retail Spaces”, and collectively with the Retail Malls, the “Properties”). The Properties have a total net lettable area of 910,582 square metres and total valuation of Rp 19,475 billion as at 31 December 2017, and are strategically located in major cities of Indonesia with large middle-income population. Tenants include leading names such as Matahari Department Store, Zara, M&S, H&M, Sogo, Giant, Hypermart, Carrefour, Ace Hardware, as well as international specialty tenants such as Victoria’s Secret, Promod, McDonalds, Pizza Hut, KFC, A&W, Fitness First and Starbucks.
  Siew Jian Bin I also kept this share, but the rupee is down VS SGD, haiz... Anyway, the gearing is less than 10%, shd have room to grow! 24/07/2012 10:21 PM wangzhongpeng I also keep this share and waiting the price go down , want to buy some more shares. 26/07/2012 8:28 AM Jian Bin Siew Tomorrow the result will out, hope that the earning can increase to SGD0.008. 01/08/2012 9:42 PM Fong Kh http://www.reitsweek.com/2013/12/china-tycoon-purchases-193-million.html 03/12/2013 10:15 AM Fong Kh http://infopub.sgx.com/FileOpen/Press_Release_revised_613pm.ashx?App=Announcement&FileID=295464 27/06/2014 12:58 PM Fong Kh "Lippo Malls Indonesia Retail Trust (SGX: D5IU), a real estate investment trust focused on Indonesia-based retail properties, proposed a new acquisition. In the announcement, the trust also recommended that the purchase be partially funded by an equity fund raising exercise which might potentially dilute existing unit-holders’ stake in the trust by up to 12%. Given the extent of dilution, does this acquisition make sense for unit-holders?" read more at http://www.fool.sg/2014/09/16/is-lippo-malls-indonesia-retail-trusts-latest-property-purchase-a-winner/ 17/09/2014 10:03 AM Jian Bin Siew Why sgd vs idr keep.increasing? Else, i will make profit through this counter. Now the price is so low, nothing to lose. 08/12/2014 2:44 PM Fong Kh http://sdb.theedgemarkets.com/2014/SDBsetia/SDBsetia_20141209_98hnig.pdf page 2 09/12/2014 12:54 PM punklitez https://heartlandboy.com/lippo-mall-indonesia-retail-trust-initiation-report/ 20/05/2017 11:53 AM SKay How does the Proposed Issuance of S$120m Perpetual Securities affects the future of Lippo? More cash? 16/06/2017 9:48 AM punklitez gearing will come down since it is "classified" as equity in the balance sheet. It will definitely be used to finance the kendari acquisition. Excess cash will be used to refinance 2 bonds expiring in July (5.875%) and Nov (4.48%) 2017. Therefore, gearing ratio will come down but all in cost of debt may increase. 17/06/2017 10:09 AM SKay https://sg.finance.yahoo.com/news/lippo-malls-indonesia-retail-trust-020902683.html Lippo Malls Indonesia Retail Trust (SGX: D5IU), or LMIRT for short, is an Indonesian retail REIT listed in Singapore. It owns a portfolio of 23 retail malls and seven retail spaces located across four cities in Indonesia. Last year, LMIRT increased its debt load to acquire two new properties, which prompted Moody’s to review the trust’s credit rating. If its credit rating is downgraded, LMIRT’s ability to secure additional loans or refinancing might be compromised. It might consequently have to obtain loans at a higher interest rate. A higher cost of debt, will, in turn, affect earnings and distributions. I have done some research on the REIT and have concluded that despite Moody’s review on the REIT’s credit rating, LMIRT has been able to manage its debt strategically over the years and going forward, it is more than likely to be able to repay any debt obligations it currently owes. Gearing ratio The first reason I believe this is the case is that LMIRT has a gearing ratio that seems very manageable. The gearing ratio is the total debt compared to the total assets of the trust. As of 31 December 2017, LMIT had a gearing ratio of 33.7% (including perpetuities). This is well within the Monetary Authority of Singapore regulatory cap for REITs of 45%. The relatively low gearing means that the REIT still has debt headroom to increase its debt load even further. Interest coverage The interest coverage ratio measures the REIT’s ability to pay its interest expenses each year. Mathematically, it is calculated by dividing financial expense by net property income. For the year 2017, LMIRT had a net property income of S$184.2 million and financial expense of S$31.5 million. This translates to an interest coverage ratio of roughly six times. An interest coverage ratio of above five is considered very safe. By that mark, LMIRT falls well within the safe zone. Cost of borrowing Finally, LMIRT has an average cost of debt at 4.7%. Yes, this may be relatively high compared to other retail REITs in Singapore. Similar retail REITs such as CapitaLand Mall Trust (SGX:C38U), CapitaLand Retail China Trust (SGX:AU8U), and Fortune REIT (SGX:F25U) have an average cost of debt at 3.2%, 2.81% and 2.41% respectively. However, LMIRT has one of the highest property yields at 9.65%. This more than makes up for its high cost of debt such that the trust can easily pay off its finance costs. To put this in perspective CapitaLand mall Trust, CapitaLand Retail China Trust and Fortune REIT have property yields of 5.3%, 5.8% and 3.6% respectively. The Foolish bottom line LMIRT has previously had an aggressive expansion strategy that relied mostly on borrowing for further acquisitions. Despite this, their overall capital management looks prudently managed. It has a relatively low gearing ratio, a high interest coverage ratio and an asset yield that more than makes up for its borrowing cost. All things considered, I believe that the REIT has put in place prudent debt management strategy and has the means to see through all of its current financial obligations. 16/04/2018 5:05 PM  |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
