Trouble come in troops for Lippo Malls Indonesia Retail Trust, which reported a set of terrible FY2018 financial results on 22 February 2019. Distribution per unit (DPU) for FY2018 dropped by a whopping 40.4% to 2.05 cents on the back of weakening Indonesian rupiah, new tax regulation and increased total operating expenses. It was certainly a revelation for Lippo Malls Indonesia Retail Trust investors for the past one year!
For those investors who bought Lippo Malls Indonesia Retails Trust at IPO price of $0.80 in 2007 and hold it till now, they would be staring at massive paper losses even if total DPU had been factored in. This is because the unit price has free fell to a dismal level of $0.192.
For sure, it had been a roller-coaster ride for unitholders of Lippo Malls Indonesia Retail Trust. But then again, who said that investing in REITs is safe? Should Lippo Malls Indonesia Retail Trust investors throw in the towel or hang on for their dear lives?
Sinking feeling for Lippo Malls Indonesia Retail Trust
As if the above is not enough, investors of Lippo Malls Indonesia Retail Trust should expect maelstrom for its unit price as parent company, Lippo Karawaci, is unleashing its mall assets to Lippo Malls Indonesia Retail Trust in a bid to raise funds for its Meikarta township project.
On 12 March 2019, Lippo Karawaci announced a stunning USD1billion funding aimed at strengthening balance sheet and paring down debts. USD280million is expected to be raised from asset divestment plans. Now, investors must be wondering what’s that got to do with Lippo Malls Indonesia Retail Trust?
Plenty. On 11 March 2019, Lippo Karawaci entered into a conditional sale and purchase agreement with Lippo Malls Indonesia Retail Trust to which Lippo Karawaci would sell the retail components of Lippo Mall Puri for USD260million. This strategy of capital funding is called “asset recycling”, something which ex-CEO of CapitaLand used to do when he launched a series of S-REITs to raise funds for CapitaLand’s China real estate adventure.
To fund the purchase, it is likely that Lippo Malls Indonesia Retail Trust would make [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
In a bid to raise financial literacy and reward SG Wealth Builder members, I am pleased to launch the Best SGX stock research campaign. Winner of this contest gets to receive cash prize of $1000!
The rationale for launching this activity is to level the playing field for retail investors, who often lack access to quality SGX stock research, especially homegrown SME stocks. Through this SGX stock research campaign, I hope to raise interest in SGX stocks among local investors, and at the same time, encourage members to share ideas and showcase their analytic skills. The winning entry will be published in this blog for learning purposes.
The winning SGX stock research article must cover a stock that is listed in Singapore Exchange (SGX) and should be engaging and interesting to read. From a story-telling perspective, you can share your best or worst SGX stock investments and what valuable lessons that can be gleaned. Ideally, the article should also contain data to back up the thesis and provides insightful analysis.
Winning prize: $1000
- This campaign is open to existing SG Wealth Builder Members only. If you are not a member, please sign up here. Email subscribers are not eligible.
- Each SG Wealth Builder member is entitled to submit one article only.
- Each article must be at least 1000 words in Microsoft Word document. Must not be published at any platform before. Any article found plagiarism would be automatically disqualified. You do not need to provide infographic or images but if you do, they must carry the applicable licenses.
- Email your submission to email@example.com from 1 April 2019 to 31 May 2019. Late submission will not be entertained.
- In your document submission, you must provide your member userid or email address.
- The winning entry will be announced on 7 June 2019 and the winner will be notified through email. He/she must give the consent for the article to be published in this blog in order to receive the cash prize.
- In the event of a lack of quality submissions, there may be no winner. However, under such circumstances, consolation prizes may be given for entries that do not meet the evaluation criteria.
Not a member yet? You may sign up to become a member of SG Wealth Builder. The full benefits and privileges of SG Wealth Builder Membership:
- Access to the latest premium articles of SG Wealth Builder
- Email notifications of latest blog articles
- Participate in SG Wealth Builder campaigns
- Request for coverage on stocks, insurance and other personal financial topics
- Comment in articles and Wealth Forum
SG Wealth Builder Membership
You may sign up for the SG Wealth Builder Membership for only $15 per month. As a member, you can access all the articles, including the premium ones.
Note: After payment is made, you will be prompted with registration form to create your user-id and personal password.
[wlm_paypalps_btn name=”SG Wealth Builder (Annual renewal)” sku=”7BB4D00C52″ btn=”pp_pay:l”]