The manager of Lippo Malls Indonesia Retail Trust (LMIRT) has declared distribution per unit (DPU) of 0.04 cents for the 4QFY2020 ended December, 92.3% lower than DPU of 0.52 cents for the corresponding period the year before.
FY2020 DPU stood 84.8% lower at 0.34 cents, from FY2019’s 2.23 cents.
Total gross revenue for the 4QFY2020 fell 60.7% y-o-y to $27.4 million due to discounts given to tenants on shorter opening hours amid Covid-19.
The quarter also included additional relief adjustments for the 2HFY2020 to selected key tenants.
4QFY2020 gross rental income (GRI) fell 65% y-o-y to $13.8 million due to the expiry of master leases in Lippo Mall Kemang on Dec 16, 2019, as well as the divestment of Pejaten Village and Binjai Supermall.
Net property income (NPI) for the 4QFY2020 fell 77.7% y-o-y to $10.6 million.
FY2020 total gross revenue fell 45.6% y-o-y to $148.5 million due to the temporary closure of retail malls and spaces amid the pandemic. The malls and spaces closed at the end of March in 2020 and reopened gradually.
FY2020 GRI fell 49.6% y-o-y to $78.3 million due to the additional rental reliefs that were given to selected tenants, as well as the expiry of master leases in Lippo Mall Kemang and the divestment of Pejaten Village and Binjai Supermall
NPI for the FY2020 fell 56.7% y-o-y to $76.4 million.
Cash and cash equivalents as at end-December stood at $106.1 million.
Looking ahead, the manager expects recovery for Covid-19 to be uneven across Indonesia.
Tenants in certain retail segments will continue to face significant challenges and additional rental and service charge reliefs will need to be granted to such tenants to maintain occupancy, it says.
In the long run, the manager says the completion of the acquisition of Lippo Mall Puri provides “great potential” for rental reversion growth and capital appreciation, and “repositions the trust for sustainable growth trajectory”.
“The successful strategic acquisition of our flagship Lippo Mall Puri will ensure a steady stream of income and together with our recent fundraising initiatives, such as our asset divestments, the Rights Issue, bank loan facilities and the Trust’s second US Dollar bond offering, the Trust is well-positioned to capitalise on opportunities as the Indonesian consumer market rebounds. These will include the restarting of our delayed asset enhancement initiatives on our existing assets to further optimise their value,” says James Liew, CEO of the manager.
Units in LMIRT closed 0.1 cent higher or 1.6% up at 6.3 cents on March 1.
