Lippo Malls REIT (LMIR)

[wonghw12]

All the above points valid - but wondering if anyone will bite given the yield on the higher side? approx 8.5% range thereabouts

The yield can be somewhat artificial:
1. A significant part of the yield (>30%) is due to return of capital. The assets have a short lifespan, yet LMRT continues to dividend out instead of setting aside capital to replenish the property. Sooner or later, LMRT may have to cut dividends and/or do a huge rights issue.
2. Similar to the point raised by whlplkps on the dilution to unitholders, the yield is artificially supported by fees paid in units (which enhanced the yield by about 9%).
3. The yield is really IDR (instead of SGD), so it is not comparable to other REITs. After factoring points #1 and #2, does LMRT still look attractive when 10Y IDR government yields are at 6.6%?