Lippo Malls Indonesia Retail Trust's Gajah Mada Plaza. (Photo: Lippo Malls Indonesia Retail Trust)Lippo Malls Indonesia Retail Trust's Gajah Mada Plaza. (Photo: Lippo Malls Indonesia Retail Trust)

Lippo Malls Indonesia Retail Trust has reported a 1.7% year-on-year growth in distribution per unit (DPU) to 0.60 Singapore cents for its 2Q 2019.

The Indonesia-focused retail REIT reported better distributable income of SGD17.5 million, compared to SGD16.8 million a year ago.

Total gross revenue for the quarter rose 29.7% on-year to SGD68.3 million, mainly on higher service and utilities recovery charges collected directly from tenants.

This was partially offset by lower gross rental income which dipped 5.8% on-year to SGD39.0 million on lower income from Lippo Plaza Batu and Palembang Icon upon expiry of the master leases in July 2018, and lower casual leasing income in 2Q 2019.

Net property income gained 1.9% on-year to SGD44.0 million in 2Q 2019 from SGD43.2 million in 2Q2018, largely due to more stringent and effective operating cost management initiatives as well as positive rental reversions for renewed rental spaces, said the REIT.

The improved performance was further aided by a stable IDR, which depreciated at a lower on-year quantum of 0.6% against the SGD in 2Q 2019, it added.

Its gearing ratio stood at a healthy 35.2%, with average interest cost excluding perpetuals at 6.28%.

Portfolio occupancy came in at 92.2%.

LMIRT was last done on the Singapore Exchange at SGD0.24.

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.