- High Dividend Yield
Business Model of Lippo Mall Indonesia Retail Trust (‘Lippo Mall Trust’)
Lippo Mall Trust is a business trust listed on the SGX which manages a portfolio of 19 malls and 7 retail plaza across Indonesia. It collects rent from the tenants and after netting operating expenses, the rents are then paid out to unitholders. Therefore, it behaves exactly like a REIT and should be considered a high-dividend stock in one’s portfolio. The bulk of its portfolio is in Jakarta and hence this initiation report will have a focus on the Jakarta retail market. It can be considered defensive in nature and hence it is largely tethered to the Indonesian household consumption.
Diagram 1: Location of Lippo Mall Trust’s Portfolio (Source: Lippo Mall Indonesia Retail Trust)
Investment Merits of Lippo Mall Trust