Lippo Malls Indo Retail Trust (LMIRT) - OCBC Investment 2017-06-01: Retail Spending Continues To Grow YoY In March

Lippo Malls Indo Retail Trust (LMIRT) - OCBC Investment 2017-06-01: Retail Spending Continues To Grow YoY In March LIPPO MALLS INDO RETAIL TRUST D5IU.SI

Lippo Malls Indo Retail Trust (LMIRT) - Retail Spending Continues To Grow YoY In March

  • According to Bank Indonesia’s Retail Sales Survey, real sales growth in Indonesia grew 4.2% YoY in March and is expected to increase 5.4% YoY in April, with the growth mainly driven by spending on food. 
  • Indonesia’ GDP grew 5.0% YoY in 1Q17, and is expected to grow 5.1% to 5.2% YoY for 2017 according to recent comments by Bank Indonesia’s deputy governor.
  • With occupancy costs within Indonesia relatively low at ~10% vs. ~15 to > 20% in Singapore, and with retail spending continuing its upward trend, we remain positive on the medium-term potential (three to five year horizon) of Lippo Malls Indonesia Retail Trust (LMIRT) to continue achieving positive rental reversion rates. 
  • The NPI yield of LMIRT’s portfolio stands at 9.0%. 
  • As of yesterday’s price, LMIRT is currently trading at an 8.4% FY17F dividend yield and we find current levels attractive. 
  • We re-iterate our BUY rating with a fair value of S$0.435.




Deborah Ong OCBC Investment | http://www.ocbcresearch.com/ 2017-06-01
OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 0.435 Same 0.435



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