Singapore-listed LMIRT Management, manager of Lippo Malls Indonesia Retail Trust has achieved a third quarter year-on-year DPU increase of 11.6 per cent.
Its annualised yield, based on the closing price of 32 SGD cents on September 30, is estimated to be 9.5 per cent per annum
The result was achieved despite a 5.1 per cent year-on-year depreciation of the Indonesian Rupiah. Gross revenue grew by 32.7 per cent (in Singapore dollar terms), mainly due to the contributions from Lippo Mall Kemang which was acquired at the end of 2014, as well as from the acquisitions of Lippo Plaza Batu and Palembang Icon in July 2015.
“The underlying portfolio performance (excluding contributions from the new acquisitions) has remained favorable, as year-on-year growth in gross rental income and net property income were at 7.4 per cent and 7.7 per cent respectively (in Indonesian currency terms), with occupancy of the shopping malls at 93.9 per cent, well above local industry average.
Over the past three quarters, the average DPU growth has been 11.7 per cent.
CEO of the REIT Manager, Alvin Cheng, said whereas the increase in DPU is mainly due to the acquisitions made at end of 2014 and in July this year, the underlying portfolio continues to deliver consistent performance.
“It shall remain the REIT Manager’s conviction to deliver accretive acquisitions to our unitholders and to maintain steady growth in DPU over time.”
“With the newly acquired assets in the past year, coupled with the stable business fundamentals in Indonesia for retail malls, as well as the continuing high occupancy rate, we look forward to continually increase portfolio revenue and distributions to unitholders in the coming quarters”.