LMIR – BT

LMIR Trust’s Q2 DPU rises 4.9%

LIPPO-MAPLETREE Indonesia Retail Trust (LMIR Trust) has announced a distribution per unit (DPU) of 1.09 cents for the second quarter ended June 30, 2011, up 4.9 per cent from 1.04 cents a year ago.

Distributable income for the period totalled $11.86 million, a 5.5 per cent increase over $11.24 million in Q2 2010.

This represents an annualised DPU yield of about 7.1 per cent based on its Aug 4 closing price of 63.5 cents per unit.

Gross revenue in Q2 dropped 17.5 per cent from $40.15 million a year earlier to $33.11 million.

LMIR Trust cited two main reasons: the depreciation of the Indonesian rupiah as seen in foreign exchange rates used for translating revenues denominated in rupiah into Singapore dollars; and the fact that six months of service and charges receipt and utilities cost recovery income were recognised in Q2 2010, versus only three months in Q2 2011. This was because of a delay in transition of the malls’ operations from third-party operators in early 2010.

Net property income rose 4.3 per cent from $21.64 million in Q2 2010, to $22.57 million in Q2 2011.

First-half net property income increased 7 per cent from $41.98 million in H1 2010 to $44.92 million in H1 2011.

Said Vivien G Sitiabudi, chief executive officer of Lippo-Mapletree Indonesia Retail Trust Management: ‘LMIR Trust continues to benefit from the robust Indonesian economic environment which has resulted in rapid growth in income and consumption for the expanding middle class segment.’

Ms Sitiabudi also said that she expects demand for space in LMIR Trust’s malls to remain high.

‘Encouraged by the healthy 6.8 per cent growth forecast for Indonesia in 2011 and the rise in consumer confidence, local and international brands have continued to expand their business in strategic locations across Indonesia,’ she said.

LMIR Trust’s property portfolio comprises seven retail spaces and eight retail malls in Indonesia. The properties have a total net lettable area of 398,069 sq m, and a total valuation of $1.08 billion.

LMIR Trust closed 3.5 cents lower yesterday at 60 cents per unit on a day when Asian bourses took a severe beating following a sharp drop on Wall Street.