Lippo Malls Indo Retail Trust (LMIRT) - OCBC Investment 2017-10-16: Proposed Acquisition Of Two Malls From Sponsor

LIPPO MALLS INDO RETAIL TRUST D5IU.SI

Lippo Malls Indo Retail Trust (LMIRT) - Proposed Acquisition Of Two Malls From Sponsor

The manager of Lippo Malls Indonesia Retail Trust (LMIRT) announced that LMIRT has entered into conditional sale and purchase agreements to acquire two income-producing retail malls in Indonesia – Lippo Plaza Jogja (LPJ) and Kediri Town Square – from sponsor Lippo Karawaci for S$98.1m.

Both acquisitions will be financed via proceeds from the issuance of bonds and/or debt financing facilities from banks and partially by internal cash.
Should these acquisitions be completed, LMIRT’s portfolio will expand to 30 properties with a total asset size above S$2b. On a pro forma basis, the acquisitions would be slightly accretive with FY16 DPU at 3.43 S cents instead of 3.41 S cents (actual). This is due to the vendor support.
For now, we keep our BUY and fair value estimate of S$0.455.

Deborah Ong OCBC Investment | http://www.ocbcresearch.com/ 2017-10-16

OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 0.455 Same 0.455