Lippo Malls Indonesia Retail Trust reported Tuesday its third quarter net property income rose 31.5 percent on-year to S$17.29 million on the newly acquired Lippo Mall Puri.
Gross revenue for the quarter ended 30 September rose 7 percent on-year to S$30.89 million, with Lippo Mall Puri contributing S$10.3 million to gross revenue, the trust said in a filing to SGX.
Lippo Mall Puri’s contribution “was partially offset by the loss of income following the temporary closures of the trust’s assets during the emergency public activity restrictions (PPKM) period in July and August, with affected tenants granted rental waivers while essential service tenants were granted rental discounts to account for the shortened mall operating hours and lower shopper traffic. Additionally, a 40 percent service charge discount was also extended to tenants during the temporary closure period,” the trust said.
The distribution per unit (DPU) increased 28.6 percent on-year to 0.09 Singapore cent from 0.07 Singapore cent in the year-ago period, the filing said.
The portfolio’s average occupancy rate for the quarter fell to 81.1 percent, compared with 85.5 percent in the year-ago period, and 91.5 percent in 2019, before the Covid-19 pandemic, LMIR Trust said. The decline was mainly due to the early termination of leases of anchor tenants Matahari Department Store and Hypermart, the trust said.
LMIR Trust said mall traffic fell in the third quarter due to Covid-related movement restrictions, but in October, traffic recovered to around 52 percent of pre-Covid levels.
In rupiah terms, net property income increased 29.3 percent on-year to 183.5 billion rupiah in the third quarter, while gross revenue rose 5.8 percent on-year to 328.06 billion rupiah, the filing said.
For the January-to-September period, net property income increased 13.9 percent on-year to S$74.88 million, while gross revenue rose 2.4 percent on-year to S$124.15 million, the filing said.
The trust’s retail malls and retail spaces have gradually reopened, but still have some restrictions on capacity, vaccination requirements and lower dining-in capacity, the filing said.
“Operationally, following the reopening of our malls and retail spaces after the temporary closure of approximately one and a half months, the trust has seen favourable improvements in shopper behaviour as the malls are currently operating with less restrictions compared to the same period last year. However, the highly infectious Delta variant that caused a resurgence of the outbreak in Indonesia continues to impact the trust’s financial performance as we need to continue to provide rental support to our tenants over the next few months,” James Liew, CEO of the trust’s manager, said in the statement.
“We will also be working closely with our mall operator to actively bring in new and replacement tenants to boost the occupancy of some of the malls that were significantly impacted during this past one and half years of challenging operating conditions,” he added.