Singapore-listed cross border REIT Lippo Malls Indonesia Retail Trust (LMIR) has reported a jump of 25.1% in its Net Property Income (NPI) for 4Q12 compared to the same period last year. The rise comes on the back of new revenue streams from recently acquired properties that were purchased in December 2011, namely Pluit Village and Plaza Medan Fair.

However the higher gross revenue figures have been partly hampered by foreign exchange rates used for translating revenues dominated in IDR to SGD. As such distribution per unit (DPU) for LMIR stands at 0.74 cents for 4Q12, a nominal improvement from the 3Q12 DPU of 0.73 cents. LMIR is an Indonesia-focused Retail REIT that listed on the Singapore Exchange in 2007. It currently holds 15 retail properties across Java and Sumatra.

Lippo Malls Indonesia REIT
Indonesia's GDP grew 6.5% in 2012, shoring up robust domestic demand for retail spaces. 

The property giant is widely seen to be riding on heightened Consumer Sentiment Index in Indonesia. In November 2012, retail figures for Indonesia show a surge of 17% YOY. Foreign Direct Investment (FDI) for Indonesia rose 23% in 4Q12 after registering a growth of 22% in the previous quarter.

LMIR Trust’s mall portfolio occupancy is at 93.5% as of 31 December 2012 a figure higher than the industry average for the country. The Trust currently holds assets worth S$1.75 billion as of end 2012 but is widely anticipated to make further acquisitions in the near future given its relatively low gearing ratio of 24.5% as of 31 December 2012.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.