SINGAPORE (Nov 2): LMIRT Management, the manager of Lippo Malls Indonesia Retail Trust, announced that 3Q17 DPU held steady at 0.86 cents compared to 3Q16.
LMIRT’s 3Q17 earnings also remained steady at $24.2 million.
Gross revenue for 3Q17 rose 5.5% to $49.6 million from $47.0 million last year, underpinned by contributions from Lippo Mall Kuta and Lippo and Lippo Plaza Kendari, which were acquired in Dec 2016 and June 2017 respectively, as well as positive rental reversions.
Gross rental income was 7.7% higher at $40.8 million compared to $37.9 million in 3Q16, mainly due to the acquisition of Kuta, Kendari and positive rental reversions.
This brought net property income (NPI) for the third quarter ended September to $46.4 million, 7.1% higher than $43.3 million reported in the previous year.
Meanwhile, the trust’s total property operating expenses for 3Q17 decreased 13.7% to $3.19 million compared to $3.69 million in 3Q16.
Financial expenses decreased 22.4% to $9.72 million from $12.5 million last year, mainly due to $150 million bond and $50 million bond repaid in Oct 2016 and July 2017 respectively, which were replaced by perpetual securities and accounted for in the Statement of Changes in Unitholders' Funds.
As at Sept 30, cash and cash equivalents stood at $74.9 million.
Chan Lie Leng, CEO of the REIT manager says, “Following the acquisition of Lippo Plaza Kendari in June this year, we have recently announced our intention to acquire two more retail malls, Lippo Plaza Jogja in Yogyakarta and Kediri Town Square in East Java, for a total purchase consideration of $98.1 million. On completion, the trust’s portfolio will expand to 30 properties with an asset size over $2 billion, and we expect these new additions to further boost the trust’s income stream and deliver steady returns to our unitholders.”
See: Lippo Malls Indonesia Retail Trust to acquire 2 malls for $110 mil; First REIT snaps up hospital component
Units in LMIRT closed 44 cents on Thursday.
