I do not understand this acquisition by LMIR.
They currently have a dividend yield of 10%. Then they proposed to buy this mall which will reduce their dividend yield.
I did some notes for a friend, so I thought I will put it out here.
For those who are invested in real estate investment trusts (REITs), the company not just pays you dividends. Sometimes they do ask for money from you again. And again. So you got to be familiar with all these rights issues, placements, preferential offerings. If you don’t learn about this, better not invest in REITs.
Lippo Malls Indonesia Retail Trust (LMIR) proposed to spend S$430 mil to acquire Lippo Mall Puri, a shopping center located in Jakarta. The shopping center was bought from PT Mandiri Cipta Gemilang, which is an indirectly wholly-owned subsidiary of PT Lippo Karawaci Tbk, the sponsor of LMIR.
What happens is that