Indonesian mall owner posts modest growth

Singaporean mall operator Lippo Malls is optimistic about its fortunes in Indonesia after reporting a high occupancy rate and modest rental growth.

Lippo Malls Indonesia Retail Trust has 16 retail malls and seven retail spaces in its Indonesian portfolio.

It reported gross rental for the third quarter grew 1.6 per cent in local currency, to Rp266.1 million due to an 11.6 per cent rental revision.. But the trust was harmed by the declining value of Indonesia’s currency – when translated to Singapore dollars, rental income declined 9.6 per cent to S$28.3 million.

Net income fell 16.8 per cent to S$30.9 million.

Significantly, the trust’s mall occupancy rate stood at 95 per cent which is well above Indonesia’s industry average of 86.1 per cent.

But the trust’s CEO Alvin Cheng remained positive.

“The general outlook for Indonesia economy remained resilient following the election of the new President Joko Widodo. The underlying business fundamentals remained stable, as illustrated by the growth in Gross Rental Income and continuing high occupancy rate.”

Meanwhile, LMIRT is completing the acquisition of a newly completed shopping centre Lippo Mall Kemang (pictured above) from property developer Lippo Karawaci for S385.7 million.

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