LMIR Trust posts 2Q21 net property income more than doubled

Lippo Mall Puri, part of the St Moritz Jakarta Integrated Development located in West Jakarta. Lippo Malls Indonesia Retail Trust, or LMIR Trust, agreed to aquire the mall in March 2019. Credit: LMIR TrustLippo Mall Puri, part of the St Moritz Jakarta Integrated Development located in West Jakarta. Lippo Malls Indonesia Retail Trust, or LMIR Trust, agreed to aquire the mall in March 2019. Credit: LMIR Trust

Lippo Malls Indonesia Retail Trust reported Monday its second quarter net property income more than doubled to S$31.81 million from S$12.822 million in the year-ago quarter amid lower rental and service-charge discounts as the operating environment gradually recovered and on contributions from the newly acquired Lippo Mall Puri.

Gross revenue in the quarter ended 30 June increased 81.3 percent on-year 13.9 percent on-quarter to S$49.65 million, the trust said.

The distribution per unit (DPU) was 0.09 cent, falling from 0.11 cent in the year-ago quarter, but up from 0.08 cent in the first quarter, the filing said.

“Indonesia was showing signs of recovery in the first half of the year with the launch of its vaccination programme, lesser Covid-19 transmissions reported and easing of restrictions. As our malls and tenants gradually resumed operations with the improving operating environment, we were able to extend lower rental and service charge discounts, resulting in both year-on-year and quarter-on-quarter improvements in our financial performance,” James Liew, CEO of the trust’s manager, said in the statement.

“Unfortunately, Indonesia is experiencing a resurgence of Covid-19 cases due to the highly transmissible Delta variant. The government has imposed emergency public activity restrictions since 3 July for an initial period of three weeks, which is now extended to 2 August. In compliance and to help curb the rampant spread of the virus, our malls in Java, Bali and Medan are temporarily closed till 2 August, with possible extension depending on regulations,” he added.

LMIR Trust said it would extend rental waivers to tenants unable to operate during this period, and additional rental support and service-charge discounts are being considered.

Overall portfolio occupancy remained stable at 83.4 percent as of end-June, above the industry average of 77 percent, the trust said.

LMIR Trust’s portfolio has 22 retail malls and seven retail spaces located within other malls, with a total carrying value of 18.969 trillion rupiah as of end-June.