As most of you know, LippoMalls form a significant portion of my portfolio, see My Singapore Stock Portfolio Early September 2012. So when LippoMalls goes on an acquisition spree, acquiring 6 malls in a month’s time, I would be very concerned with these transactions. Earlier, I lamented that LippoMalls wasn’t very active in seeking acquisitions and the low leverage meant that it was not very efficient. So now that they are acquiring new properties, people are complaining. Why’s that? That’s due to the showing of a lower pro forma dividend yield post acquisition. Since investors are all about the yield, why would they invest when the yields become lower? We will take a look into these acquisitions later, but firstly let’s look at the pro forma dividend yields.

LippoMalls Pro Forma 2011 Dividend Yield

As we can see from the chart above, 2011 dividend yield drops from 6.23% to ......