LMIR Trust reports 1Q22 net property income rose 21 percent

A bundle of Indonesian rupiah notes. Photo by Mufid Majnun on UnsplashA bundle of Indonesian rupiah notes. Photo by Mufid Majnun on Unsplash

Lippo Malls Indonesia Retail Trust (LMIR Trust) reported Friday its first quarter net property income increased 21.3 percent on-year to S$31.27 million on the easing of Covid-related restrictions in Indonesia and a decline in discounts given to tenants.

In addition, the acquisition of Lippo Mall Puri had a full quarter contribution in the first quarter, compared with the year-ago period, with the asset acquired on 27 January 2021, the REIT said, adding that contributed an additional S$1.2 million to rental revenue and S$1.7 million to service charge and utilities recovery.

Gross revenue for the January-to-March quarter grew 16.7 percent on-year to S$50.90 million, the Indonesia-focused mall REIT said in a filing to SGX.

The distribution per unit (DPU) for the quarter was S$0.09, up 12.5 percent from S$0.08 in the year-earlier quarter, LMIR Trust said.

“Amid improving operating conditions, easing of restrictions and the opening of borders to international travellers in Indonesia, most of our tenants are able to resume operations, albeit still subject to certain restrictions to reduce the risk of a sudden surge of cases,” James Liew, CEO of the REIT’s manager, said in the statement.

“Notably, despite a spike in cases in February from the less deadly Omicron variant, our malls remained opened and we were able to manage the situation well with reduced rental or service charge discounts to our tenants,” Liew said. “We are seeing more active consumer behaviour and improving shopper traffic to our malls.”

In rupiah terms, net property income for the quarter rose 21 percent on-year to IDR331.5 billion on gross revenue of IDR539.68 billion, the filing said.

Occupancy for the portfolio slipped to 79.1 percent in the first quarter, down on-quarter, the REIT said, noting that at end-2021, occupancy was at 80.9 percent. The decreased occupancy was due to the early termination of a department store which occupied around 1 percent of the portfolio’s net lettable area, the filing said.

Read more details about Lippo Malls Indonesia Retail Trust’s results.