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My investment in Lippo Mall Indonesian Retail Trust (D51U.SI)
07 Oct 2021 (392 views)  

I want to share my experience of investing in LMIRT, which is a REIT listed in the Singapore Exchange. It owns 30 malls and retail spaces in various cities in Indonesia.

I invested in this stock about three years ago when the price was around $0.20. I had dropped from $0.40 a year earlier, due mainly to weakness in the Indonesia Rupiah.

At that price, it offered an attractive dividend yield of more than 6%.

The stock price continued to drop over the next three years . It was badly hit in 2020 and 2021 when many of the malls have to be closed due to the covid pandemic. 

The stock dropped to a low of $0.047 and has since recovered to $0.053. 

During this time, I added to my investments. I now own 980,000 shares at an average cost of $0.1108. The total invested sum is $109,000 SGD.  At the current price of $0.053, I am seeing a loss of $52,000 on this stock.

I find the REIT to be undervalued. The positive factors for this REIT are:

a) The infection and deaths due to covid has now dropped by over 80% compared to a peak a few months ago. Indonesia is relaxing its covid restrictions.

b) It was reported on 26 August that LMIRT has opened 19 malls and 4 retail spaces, making a total of 23 outlets. LMIRT has a total of 30 malls and retail outlets.

c) At its current stage of economic development, the retail malls will play an important role in serving the needs of the general population.

d) With the opening of the malls, I expect the REIT to show a profit on its operations in the near future.

e) The total debt to equity ratio is 85%. It is somewhat high, but not excessive. I believe that the board will be able to manage it.

f) Based on the current price, the dividend yield is slightly over 4%.

As the price had dropped to a low level, I decided to buy another 200,000 shares at a price of $0.054. 

I hope that the stock price will recover from its current low level.

However, I am aware that this is highly speculative and the market capitalization of this stock is quite low (less than $500 million SGD).

Note - I am sharing my experience in investing in this stock. I am not giving any investment advice on this stock. Please do your own due diligence before you buy or sell this stock.

Tan Kin Lian


My investment in Lippo Mall Indonesian Retail Trust (D51U.SI)
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I want to share my experience of investing in LMIRT, which is a REIT listed in the Singapore Exchange. It owns 30 malls and retail spaces in various cities in Indonesia.

I invested in this stock about three years ago when the price was around $0.20. I had dropped from $0.40 a year earlier, due mainly to weakness in the Indonesia Rupiah.

At that price, it offered an attractive dividend yield of more than 6%.

The stock price continued to drop over the next three years . It was badly hit in 2020 and 2021 when many of the malls have to be closed due to the covid pandemic. 

The stock dropped to a low of $0.047 and has since recovered to $0.053. 

During this time, I added to my investments. I now own 980,000 shares at an average cost of $0.1108. The total invested sum is $109,000 SGD.  At the current price of $0.053, I am seeing a loss of $52,000 on this stock.

I find the REIT to be undervalued. The positive factors for this REIT are:

a) The infection and deaths due to covid has now dropped by over 80% compared to a peak a few months ago. Indonesia is relaxing its covid restrictions.

b) It was reported on 26 August that LMIRT has opened 19 malls and 4 retail spaces, making a total of 23 outlets. LMIRT has a total of 30 malls and retail outlets.

c) At its current stage of economic development, the retail malls will play an important role in serving the needs of the general population.

d) With the opening of the malls, I expect the REIT to show a profit on its operations in the near future.

e) The total debt to equity ratio is 85%. It is somewhat high, but not excessive. I believe that the board will be able to manage it.

f) Based on the current price, the dividend yield is slightly over 4%.

As the price had dropped to a low level, I decided to buy another 200,000 shares at a price of $0.054. 

I hope that the stock price will recover from its current low level.

However, I am aware that this is highly speculative and the market capitalization of this stock is quite low (less than $500 million SGD).

Note - I am sharing my experience in investing in this stock. I am not giving any investment advice on this stock. Please do your own due diligence before you buy or sell this stock.

Tan Kin Lian