The manager of Lippo Malls Indonesia Retail Trust (LMIRT) has declared distribution per unit (DPU) of 0.09 cents for the 2QFY2021 ended June, 18.2% lower than DPU of 0.11 cents in the 2QFY2020.
Sequentially, the DPU for the 2QFY2021 marks a 12.5% improvement from DPU of 0.08 in the 1QFY2021.
Distribution to unitholders more than doubled to $6.9 million in the 2QFY2021 from the $3.1 million posted in the 2QFY2020, distributed over 7.67 billion units in the REIT.
In the 2QFY2020, LMIRT had a total of 2.93 billion units in issue.
See also: LMIRT sees 92.3% y-o-y plunge in 4Q20 DPU of 0.04 cents
Gross revenue increased by 81.3% y-o-y to $49.7 million, while rental revenue more than doubled to $29.6 million in the 2QFY2021 from the $12.6 million in the same period the year before.
The higher figures were due to contribution from the newly acquired Lippo Mall Puri and underpinned by lower rental and service charge discounts.
The increase was partly offset by the $1.3 million loss of income from Binjai Supermall and Pejaten Village that were divested in 3Q2020.
Net property income (NPI) increased nearly 2.5 times to $31.8 million in the 2QFY2021 from the $12.8 million the year before.
For the 1HFY2021, rental revenue and gross revenue grew 14.0% and 1.0% y-o-y to $56.1 million and $93.3 million respectively.
1HFY2021 NPI rose 9.5% y-o-y to $57.6 million.
Distribution to unitholders for the half-year period doubled to $13.0 million.
“Indonesia was showing signs of recovery in the first half of the year with the launch of its vaccination programme, lesser Covid-19 transmissions reported and easing of restrictions. As our malls and tenants gradually resumed operations with the improving operating environment, we were able to extend lower rental and service charge discounts, resulting in both y-o-y and q-o-q improvements in our financial performance,” says James Liew, CEO of the manager.
“Unfortunately, Indonesia is experiencing a resurgence of Covid-19 cases due to the highly transmissible Delta variant. The government has imposed emergency public activity restrictions since July 3 for an initial period of three weeks, which is now extended to Aug 2. In compliance and to help curb the rampant spread of the virus, our malls in Java, Bali and Medan are temporarily closed till Aug 2, with possible extension depending on regulations,” he adds.
During the closure period, only essential services such as supermarkets and pharmacies will remain operational with shorter operating hours and capacity limits.
The trust says it will be extending rental waivers to tenants who are not permitted to operate during this period.
The extension of additional rental support and service charge discounts are being considered.
As at June 30, LMIRT’s gearing remained stable at 42.5%.
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Its portfolio occupancy rate remains at a stable 83.4% with a weighted average lease expiry (WALE) of 3.6 years by net lettable area (NLA).
“We are actively engaging with our tenants and will continue to render the necessary support and resources during such challenging times… Approximately 25.4% of expired leases or due to expire in 2021 have renewed or committed to renew their leases. We will continue to actively manage our tenant mix and work with our tenants to support their recovery,” says Liew.
Units in LMIRT closed flat at 6.2 cents on July 26.
Photo: LMIRT
