Lippo Related REITs Fall Sharply on Sponsor's Woes

News about First REIT

Both Lippo Malls Indonesia REIT and First REIT are falling sharply today as investors worry about their sponsor and parent Lippo Karawaci debt situation. The Indonesian group has seen debt downgrades by rating agencies, with Fitch lowering the group recently from B to CCC+. Investors are concerned some its assets could be offloaded to both trusts, which would then be forced to make diluting capital increase. Lippo Karawaci is also a key tenant of First REIT, creating an extra amount of uncertainty for the trust shareholders.

First REIT
Price0.240 SGD
NAV0.295 SGD
Yield (4 quarters)10.25%