Lippo Malls Indonesia Retail Trust's property, Lippo Malls Kemang. (Photo: Lippo Malls Indonesia Retail Trust)

OCBC Investment Research has downgraded its call on Lippo Malls Indonesia Retail Trust to ‘Hold’, changing its stance from the ‘Buy’ recommendation issued earlier in the wake of the REIT’s FY 2017 results.

Read: OCBC maintains ‘Buy’ on Lippo Malls REIT after FY2017 results

The bank has also trimmed its fair value estimate on the REIT’s unit price by about 10%.

Lippo Malls Indonesia Retail Trust declared a distribution per unit (DPU) of SGD 0.79 Singapore cents for its 4Q 2017, a decline of 9.2% year-on-year from the 0.87 cents achieved in the corresponding period of 2016.

Meanwhile REIT’s gross revenue and net property income (NPI) for the period rose by 1.2% and 0.8% year-on-year to SGD49.3 million (USD37.3 million) and SGD45 million respectively, while distributable income slid by 8.4% to SGD22.3 million.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.