LMIR Trust reports 4Q18 net property income fell as rupiah weakens

Indonesian rupiah notesIndonesian rupiah notes

Lippo Malls Indonesia Retail Trust reported on Friday its net property income for the fourth quarter fell 14.5 percent on-year to S$38.40 million as the rupiah weakened and on lower contributions from seven retail spaces after master leases expired.

That was partly offset by additional rental income from the acquisition of Lippo Plaza Kendari in June 2017, and Lippo Plaza Jogja and Kediri Town Square in December 2017, it said in a filing to SGX after the market close on Friday.

Gross rental income for the quarter ended 31 December fell 9.7 percent on-year to S$36.56 million, while total gross revenue increased 29.2 percent on-year to S$63.7 million, it said.

The distribution per unit (DPU) fell 62 percent on-year to 0.30 Singapore cent from 0.79 cent in the year-ago quarter, LMIR Trust said.

Guow Vi Ven, CEO of the REIT manager, noted the overall portfolio occupancy was healthy at 92.9 percent, compared with an industry average of 83.2 percent, with shopper traffic rising 14.6 percent on-year for the full year.

“Despite the challenging environment caused by the weakening Indonesian Rupiah and negative effects of new Indonesian tax regulations, our underlying portfolio continues to show stable operational performance, whilst experiencing growth in gross rental income,” she said in the statement.

Property operating expenses jumped by S$20.9 million in the quarter from S$4.37 million in the year-ago period on maintenance and operations of the malls and retail spaces, the trust said.

For the full year, the REIT reported its net property income fell 10.5 percent on-year to S$164.97 million, on gross revenue of S$230.30 million, up 16.7 percent on-year.

DPU for the full year was 2.05 Singapore cents, down 40.4 percent from 3.44 Singapore cents in 2017, it said.

The rupiah fell to 10,577 against the Singapore dollar in 2018, from 9,661 in 2017, or an around 9.5 percent on-year decline, LMIR Trust said.


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