LMIR Trust reports 4Q21 net property income nearly tripled

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 Tuesday its fourth quarter net property income jumped by nearly three times to S$29.36 million from S$10.63 million in the year-ago quarter, mainly on contributions from the newly acquired Lippo Mall Puri. 

On a like-for-like basis in the existing portfolio, the trust said it extended lower rental discounts to tenants in the quarter as Covid-related restrictions were eased and on improving operating conditions, which also boosted rental revenue. The acquisition of Lippo Mall Puri was completed in January 2021. 

Gross revenue for the three months ended 31 December climbed 86.2 percent on-year to S$50.92 million, the Indonesia mall-focused REIT said in a filing to SGX.

Higher vehicle traffic boosted car park revenue as well, the trust said.

The distribution per unit (DPU) for the quarter came in at 0.09 Singapore cent, up from 0.04 Singapore cent in the year-ago quarter, LMIR Trust said. 

‘Favourable consumer behaviour’

James Liew, CEO of the trust’s manager, said the addition of Lippo Mall Puri helped anchor LMIR Trust’s performance with its revenue and income contributions. 

“In addition, after a surge in cases due to the Delta variant in July and August, Indonesia saw a stabilising Covid-19 situation in the fourth quarter of the year, resulting in the gradual easing of restrictions on mall operations,” Liew said in the statement. 

“As conditions stabilised towards the last quarter of the year, we were seeing more favourable consumer behaviour with increasing shopper footfall to our malls as most of our tenants were able to resume operations at reduced restrictions,” Liew said, noting average shopper traffic recovered to 48 percent of pre-Covid levels in 2019. Fourth quarter shopper traffic was at 55.4 percent of levels in the fourth quarter of 2019, he said.

Average portfolio occupancy was at 80.9 percent at end-December, down from 84.5 percent at end-2020, the filing said.

In rupiah terms, net property income for the fourth quarter was IDR294.70 billion, up from IDR120.72 billion in the year-ago period, the filing said. 

For the full year, LMIR Trust reported net property income grew 36.5 percent on-year to S$104.24 million on gross revenue of S$175.07 million, up 17.9 percent on-year. The full-year DPU came in at 0.35 Singapore cent, up 2.9 percent from 0.34 Singapore cent in 2020, the filing said.

Outlook

In its outlook, Lippo Malls Indonesia Retail Trust said a spike in Covid infections due to the Omicron variant had triggered some tightening of social restrictions in Greater Jakarta, Bandung, Bali and Yogyakarta, in early February.

“The outlook for 2022 is clouded by rising cases due to the highly transmissible Omicron variant and
tightening of restrictions to curb the spread,” the trust said.

Read more details of LMIR Trust’s results.