Indonesia-focused retail REIT, Lippo Malls Indonesia Retail Trust (LMIRT), announced on 3 May that it has achieved a distribution per unit (DPU) of 0.83 Singapore cents for its 1Q 2016, an increase of 5.1% from the 0.79 cents paid in 1Q 2015.

Distributable income for the period came in at SGD23.18 million, 7.8% higher year-on-year than the SGD21.5 million reported for the corresponding period of 1Q 2015.

Correspondingly gross revenue and net property income (NPI) came 7.6% and 4.6% higher at SGD37.14 million and SGD40.83 million respectively.

“We have achieved quarterly increases in DPU since 2Q 2015”, said Viven Sitiabudi, Executive Director of the REIT’s manager.

“With the country’s large population base and rapidly expanding middle consumer class with increasing levels of purchasing power and disposable income, we look forward to growing our revenues and distributions to unitholders in the coming quarters”, she added.

The REIT’s total outstanding debt as at 31 March 2016 was SGD695 million, with a gearing ratio of 35.7%. Portfolio occupancy for the period was at 94.7%.

Lippo Malls Indonesia Retail Trust has pointed to Jakarta’s moratorium on the building of new shopping centres as a factor that is favourable for existing mall owners given the demand for retail space in the city.

“The outlook for quality retail spaces looks promising in the next 12 months as both local and foreign retail players continue to remain active”, said the REIT in its statement on the results. “Higher disposable income, lower inflation, coupled with an emerging trend of lifestyle shopping malls are expected to drive the demand for retail space”, it added.

Units of Lippo Malls Indonesia Retail Trust finished about 1.5% higher from its previous close on the Singapore Exchange to end at SGD0.33.