[SINGAPORE] Lippo Malls Indonesia Retail Trust (LMIRT) on Monday (Apr 28) posted a 2.4 per cent decline in net property income to S$29.2 million for the first quarter ended Mar 31, from S$29.9 million a year prior.
This came amid a 3.4 per cent depreciation of the rupiah to the Singapore dollar, said the trust’s manager in a media release accompanying the results.
In rupiah terms, net property income inched up by 1 per cent to 352.1 billion rupiah. This was mainly from a net reversal for an impairment loss on trade receivables, following a successful collection from a certain credit impaired tenant, it said.
The rupiah’s depreciation also resulted in a marginal 0.2 per cent drop in rental revenue to S$27.5 million in Q1, said the manager.
Meanwhile, gross revenue rose 1.4 per cent to S$49.9 million in Q1, from S$49.2 million in the corresponding period last year. It was driven primarily by a 67.4 per cent jump in car park income, following the trust’s entry into a new car park management arrangement.
No distribution was declared for the quarter.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The trust had previously announced it would cease distributions to the holders of its S$140 million and S$120 million perpetual securities in a bid to conserve cash.
On Monday, the manager noted that the “maturity issues” of previous refinancing exercises have been “substantially” addressed, with the group working to reduce its debt. But its non-restricted cash and cash equivalents decreased to S$17.2 million as at Mar 31, from S$20 million at the end of December 2024.
The manager added that global and domestic economic uncertainties remain elevated, and may continue to cause a persistently high interest rate and volatile foreign exchange environment.
The inflationary effects of recent tariff measures and geopolitical tensions could also affect the retail environment, it said. “With these uncertainties persisting, the potential impacts remain uncertain and could negatively affect the sustainability of LMIRT’s existing capital structure, its leverage ratio, credit ratings, (its) access to capital and its ability to maintain compliance with financial covenants.”
Until the trust’s financial and cashflow positions improve, the manager said, distributions to both unitholders and holders of its perpetual securities will continue to be withheld.
For the quarter, the trust’s average portfolio occupancy edged up to 82.2 per cent, from 81.2 per cent at the end of December 2024. This was underpinned by 41,971 square metres of new lease commitments, said the manager’s chief executive officer James Liew.
Weighted average lease expiry by net lettable area stood at 2.9 years as at Mar 31, with an average rental reversion of 3.9 per cent and renewal rate of 79 per cent.
Shopper traffic continued to recover in the quarter, up 7.4 per cent to 32.8 million shoppers. Liew attributed the improvement to the trust’s diversified tenant mix, with increasing emphasis on food and beverage, leisure and entertainment sectors to align with evolving consumer preferences.
“In 2025, we will continue to actively execute a phased series of asset enhancement initiatives across our portfolio, designed to elevate shopper experience, optimise space utilisation and align with the requirements of our tenants,” said Liew.
At the same time, he said, the group will manage capital carefully, making its monthly principal repayments and redeeming the remaining US dollar bonds due in February 2026. As at Mar 31, the trust’s gearing stood at a “stable” 44.2 per cent.
Units of the trust closed flat at S$0.013 on Monday, before the announcement.
