SINGAPORE (Feb 13): The manager of Lippo Malls Indonesia Retail Trust (LMIRT) reported 4Q17 DPU fell 9.2% to 0.79 cent from 0.87 cent.
This brings total DPU for FY17 to 3.44 cents, 0.9% higher than the DPU of 3.41 cents in FY16. Based on the closing price of $0.40 as at Dec 29 2017, the trust generated an attractive annualised DPU yield of 8.6%.
Gross revenue in 4Q17 rose 1.2% from a year ago to $49.3 million, while NPI climbed 0.8% to $44.9 million. Distributable income to unitholders fell 8.4% $22.3 million.
4Q17 performance was largely impacted by costs relating to the change in trustee, depreciation of the Indonesian Rupiah against Singapore Dollar, which affected NPI and resulted in lower gains from hedging contracts, and lower income from retail spaces.
The trust incurred $2 million in costs relating to the change of trustee from HSBC Institutional Trust Services (Singapore) to Perpetual (Asia), of which $1.4 million was mostly expensed in 3Q17 and 4Q17.
The expiration of the trust’s leases with PT Multipolar Tbk on Nov 18 2017 for its retail spaces also affected earnings but these spaces have since been 88.6% leased to multiple tenants.
As at Dec 31 2017, LMIRT's overall portfolio occupancy remained healthy at 93.7%, compared to the industry average of 84.4%.
In its outlook, LMIRT's manager says retail sales in Indonesia had a moderately stronger showing in November, accelerating from 2.2% year-on-year growth in October to 2.5% year-on-year growth. The growth was buoyed by stronger food and beverages sales, as well as better sales of automotive fuels.
Units in LMIRT closed at 40 cents on Tuesday.