I bought Lippo Malls as one of my very first investments back in June of 2014. Wowza… that’s almost 3 years! My thesis wasn’t very complicated. Retail REITs are a nice class of REITs, Indonesia has the demographics to give a nice “growth” story, gearing was really low (just 26%) and most of all, because it was an overseas Asian REIT, it was just shunned by most investors, giving it a nice P/NAV discount of 10%.
Just a few months later in Dec 2014, price dropped a whopping 25%, from $0.405 when I bought it, to $0.305 when I was talking about it. If I had sold, I could have booked in a beautiful annualized loss of 50%, hahaha. Instead, I rolled up my sleeves and plunged myself arms deep into the anus of this beast (very graphic imagery, I know).
Fast forward to where we are …Read the full article →