LMIRT's Q4 DPU down 9.2%

LIPPO Malls Indonesia Retail Trust (LMIRT) posted a distribution per unit (DPU) of 0.79 Singapore cent for its fourth quarter 2017, a decrease of 9.2 per cent from a year ago.

Its net property income (NPI) for Q4 was mostly flat at S$44.93 million, up 0.8 per cent from the year ago, while its gross rental income crept up by 1.5 per cent to S$40.5 million, mainly due to the acquisition of Lippo Mall Kuta and Lippo Plaza Kendari and positive rental reversions.

For the year to date, LMIRT booked a 7.4 per cent increase in gross rental income to S$164.2 million in FY2017.

The Reit recorded a 0.9 per cent increase in DPU for FY2017 to 3.44 Singapore cents.

LMIRT said its Q4 performance was impacted by costs related to the change in trustee, depreciation of the Indonesian rupiah against the Singapore dollar, which affected NPI and resulted in lower gains from hedging contracts, and lower income from retail spaces.

In terms of unsecured borrowings, LMIRT has S$75 million, 4.1 per cent notes due in June 2020, and S$100 million 4.5 per cent notes due November 2018.

As at Dec 31, LMIRT's overall portfolio occupancy was 93.7 per cent.

"Looking ahead, LMIR Trust will continue to actively manage our capital structure, as well as look out for quality and accretive assets to strengthen our portfolio to deliver long-term value to our unitholders," said Chan Lie Leng, chief executive of the Reit manager.

The trust is set to pay out its distribution on Mar 15, with a books closure date set on Feb 22.