Summary of August 2017 Transactions

A summary of my August 2017 transactions came late as I went for a short holiday over the long weekends. In the month of August, I have sold off Lippo Malls Indonesia Retail Trust. (You can read more of my reasons here: Goodbye Lippo Malls Indonesia Retail Trust)

I have also received my company performance bonus in August. As I currently have no stock in mind to invest, I decided to park a portion of my bonus into the Singapore Savings Bond. (Singapore Savings Bond versus Savings Account versus Fixed Deposits)

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Goodbye Lippo Malls Indonesia Retail Trust

LMIR Trust Logo

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

  1. 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.
  2. 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.
  3. 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%.

Do you know what is Green Shoe Option?

Green Shoe

Recently, Lippo Malls Indonesia Retail Trust (LMIR Trust) announced that they have obtained up to S$350 Million term loan facilities with a Green Shoe option of up to S$70 million. The proceeds will be used to fund acquisitions and refinance existing debt.

The term “Green Shoe Option” caught my eye. Initially, I thought it was the name of a new mall Lippo is planning to acquire, however upon further reading into the announcement, it doesn’t seem so. Read More