Lippo Malls Indo REIT

Lippo Malls Indo REIT: CIMB initaites coverage with Add and TP of $0.40. The house notes that being the only SGX-listed REIT with pure exposure to Indonesia’s retail sector, Lippo Malls Indonesia Retail Trust (LMIRT) is well placed to benefit from a growing pool of middle-class consumers and a potential rise in rental rates due to robust demand from local and international retailers as well as limited supply of new mall space. The house begin coverage with an Add rating and DDM-based target price (discount rate: 11.3%) of S$0.40. Downside risk could come from continued volatility of the Indonesian rupiah (Rp) against the Singapore dollar.