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