Tuesday, November 30, 2010

LippoMapleT - Macquarie ups Lippo-Mapletree target to $0.64

Stock Name: LippoMapleT
Company Name: LIPPO-MAPLETREEINDORETAILTRUST
Research House: MacQuarie


Macquarie raises Lippo-Mapletree Indonesia Retail Trust (D5IU.SG) target price to $0.64 from $0.55 after rolling forward valuation to 2011, lowering risk-free rate assumption. Keeps Outperform call. 

Says annualized dividend yield remains attractive at 8.6%, while overall portfolio performance strong, with average occupancy at 98% in 3Q10 vs 81% industry average. 



Notes trust plans to double asset size to S$2 billion in next few years, mainly via acquisitions. 



Says funding no issue as current gearing only 13%; “LMIR will be the main beneficiary of the growth of the Indonesian economy and the stronger rupiah.”  REIT flat at $0.52.

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