Lippo Malls Indo Retail Trust’s (LMIRT) 3Q results were within expectations. Total revenue increased 5.5% to S$49.6m while NPI increased 7.1% to S$46.4m. The growth was supported by contributions from Lippo Mall Kuta and Lippo Mall Kendari, which were acquired in Dec 2016 and Jun 2017, respectively.

Distribution per unit remained flat at 0.86 S cents or 25.4% of our full-year forecast, mainly due to the effect of perpetual securities. 9M17 DPU was 3.9% higher YoY at 2.64 s cents or 78.1%% of our full-year forecast. As at 30 Sept, LMIRT’s gearing ratio stands at 28.7%.

Pending further details from the analyst briefing, we keep our BUY rating but place our fair value of S$0.455 under review.

Source: OCBC Research - 3 Nov 2017