After holding Lippo Malls Indonesia Retail Trust for almost 5 years, I have sold it off for a profit of 46.7%. This is inclusive of dividends collected over the years. Lippo Malls currently makes up only 2% of my entire stock portfolio.
Below are the reasons why I sold off Lippo Malls Indonesia Retail Trust
- As Lippo Malls Indonesia Retail Trust assets are primarily focus on malls in Indonesia, the volatility of the foreign exchange may impact the foreign loans and distributions per unit.
- As Lippo Malls Indonesia Retail Trust makes up a petite 2% of my stock portfolio, I am selling it off as part of restructuring or organizing my stock portfolio. Too many small fragments makes it hard to manage and I have to spent considerably time to review and read the performance each quarter.
- Lippo Malls Trust has land leases that is an average of 17 years. The land lease is considerably short and it is uncertain whether they can renew the lease each time.
Having said the above, I am not hinting Lippo Malls Indonesia Retail Trust is a bad REIT as it currently pays a distribution of around 8.19%.