Lippo Malls Indonesia Retail Trust reported Thursday its third quarter net property income increased 11.8 percent on-year to S$44.12 million on a stable portfolio performance and a stronger Indonesian rupiah.
Total gross revenue for the quarter ended 30 September grew 6.8 percent on-year to S$69.25 million, the REIT said in a filing to SGX.
The distribution per unit (DPU) was 0.56 Singapore cent for the quarter, up 14.3 percent from 0.49 Singapore cent in the year-ago period, the REIT said.
In rupiah terms, LMIRT reported third quarter net property income increased 7.8 percent on-year to 453.61 billion rupiah on total gross revenue of 711.87 billion rupiah, up 3.5 percent on-year.
“We are pleased with the continued improvements in our results vis-à-vis 2018, underpinned by a healthy portfolio occupancy of 92.2 percent against industry average of 81.3 percent, and a positive rental reversion of 5.0 percent year-to-date,” James Liew, CEO of the REIT’s manager, said in the statement.
“We remain focused on actively managing our assets to boost performance, such as through the extensive asset enhancement works at Sun Plaza in Medan and at Gajah Mada Plaza in Central Jakarta,” Liew added. “The manager will also continue to capitalise on opportunities to grow inorganically such as the proposed acquisition of Lippo Mall Puri as well as evaluate opportunities to free up or recycle capital for more
Liew said the initiatives were expected to offset the expected negative impact of the master lease agreement on Lippo Mall Kemang expiring in mid-December. He noted the mall’s underlying performance was still healthy and the manager was managing the tenant mix, including converting the Matahari Departmental Store into specialty and entertainment outlets.
For the nine-month period, the LMIRT reported net property income increased 1.6 percent on -year to S$128.61 million on total gross revenue of S$203.43 million, up 22.1 percent on-year. DPU for the nine-month period was 1.71 Singapore cents, down 2.3 percent from 1.75 Singapore cents in the year-ago period, LMIRT said.