LMIR Trust posts flat Q2 DPU of S$0.0009

Jude Chan
Published Mon, Aug 8, 2022 · 09:51 PM

THE manager of Lippo Malls Indonesia Retail Trust (LMIR Trust) on Monday (Aug 8) reported distribution per unit (DPU) of S$0.0009 for the second quarter ended June 2022, unchanged from a year ago, as distribution to unitholders edged up 0.3 per cent to S$6.9 million.

This brings DPU for the first half to S$0.0018, up 5.9 per cent from S$0.0017 in the year-ago period.

Gross revenue rose 4.1 per cent to S$51.7 million in Q2, on the back of higher rental revenue as lower rental discounts were extended due to the stabilising Covid-19 situation in Indonesia.

The increase was partially offset by the expiry of the master lease at Lippo Mall Kuta and the loss of rental income due to lower occupancy.

Portfolio occupancy inched up to 79.7 per cent in Q2, from 79.1 per cent in the preceding quarter. However, this was a decline from portfolio occupancy of 83.4 per cent a year ago.

The real estate investment trust (Reit) manager said the lower year-on-year occupancy was due to the termination of leases from tenants impacted by the pandemic.

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Net property income was 8.8 per cent higher year on year at S$34.6 million, largely attributable to a net reversal of allowance for impairment loss on trade receivables of S$1.8 million.

“As Indonesia gradually transitions from pandemic to endemic phase, the easing of restrictions has enabled our malls to resume normal operating hours with most of our tenants back in operations,” said James Liew, chief executive officer of the manager of LMIR Trust.

“Operationally, as consumers get used to living with Covid, we are seeing more favourable consumer spending as well as a recovery in shopper traffic to our malls for the quarter,” he added.

Liew noted that shopper traffic to LMIR Trust’s malls have recovered to nearly two-thirds of pre-Covid levels.

Units of LMIR Trust closed flat at S$0.049 on Monday, before the results announcement.

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