Lippo Malls Indonesia Retail Trust's property, Lippo Malls Kemang. (Photo: Lippo Malls Indonesia Retail Trust)Lippo Malls Indonesia Retail Trust's property, Lippo Malls Kemang. (Photo: Lippo Malls Indonesia Retail Trust)

Singapore-listed, Indonesia-focused retail REIT, Lippo Malls Indonesia Retail Trust (LMIRT) (SGX:D5IU) announced on 5 August that it has achieved year-on-year gross revenue growth of 24.2% to SGD34.1 million.

“Despite the 5% year-on-year depreciation of Indonesian Rupiah between 2Q 2014 and 2Q 2015, the distribution per unit (DPU) has increased from 0.68 cents for 2Q 2014 to 0.73 cents for 2Q 2015, representing a 7.4% growth, as a result of the contribution from Lippo Mall Kemang which was acquired at the end of 2014”, said the REIT.

Correspondingly net property income (NPI) for the period increased 25.3% to SGD 39 million while aggregate portfolio occupancy is 94.4%.

“The increase in DPU due to the acquisition of Lippo Mall Kemang attest to the REIT Manager’s conviction to deliver accretive acquisitions to our unitholders”, said Alvin Cheng, CEO of the REIT’s manager. “However, the positive impact from the acquisition of Lippo Mall Kemang has been partly offset by the further depreciation of IDR”, he added.

The REIT’s total outstanding debt as at 30 June 2015 is SGD 695 million, after issuance of SGD75 million of an unsecured bond due June 2020 for the acquisition of two new assets, Lippo Plaza Batu and Palembang Icon completed in July. LMIRT’s gearing ratio as of 5 August 2015 is 34.3%.

Units of LMIRT closed 1.4% lower from the previous trading day on the Singapore Exchange to end at SGD0.35.

Lippo Malls Indonesia Retail Trust's property, Lippo Malls Kemang.
Lippo Malls Indonesia Retail Trust's property, Lippo Malls Kemang.

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.