LMIR – BT

LMIR Trust beats forecast with $16m Q2 distributable income

Contribution from Sun Plaza boosts results; it is upbeat about prospects

LIPPO-MAPLETREE Indonesia Retail Trust (LMIR Trust) yesterday said that its second-quarter distributable income came to $15.9 million – 3 per cent higher than the $15.4 million forecasted.

Distribution per unit (DPU) for the three months ended June 30, 2008, was 1.50 cents, also 3 per cent higher than the forecast DPU of 1.45 cents.

Net property income for Q208 was $23.3 million, 17 per cent higher than the forecast of $19.9 million.

There is no comparable period for 2007 as LMIR Trust was only listed on the Singapore Exchange in November last year.

LMIR Trust invests in Indonesian retail assets. Its current $1.2-billion portfolio consists of eight retail malls and seven retail spaces located within other retail malls.

The trust’s financial performance was boosted by contribution from its Sun Plaza mall, which was acquired in March this year. The $147-million acquisition increased LMIR Trust’s total portfolio net lettable area by about 20 per cent to 4.1 million sq ft.

For the trust’s 2008 financial year-to-date – which spans from Aug 8, 2007 to June 30, 2008 and covers both its time as a private trust and as a listed entity – distributable income was $39.3 million, while DPU was 3.7 cents – both 3 per cent higher than the forecasts.

The trust is upbeat about its future prospects and the continued growth prospects for the Indonesian economy, which have stood up well despite rising inflation and interest rates, said Viven G Sitiabudi, chief executive officer of the trust’s management team. ‘LMIR Trust’s malls are defensive in nature, as they are located in high catchment middle to upper-middle income residential areas where the inflation effect is moderate,’ she noted.

The trust is planning asset-enhancement initiatives at two of its malls – Istana Plaza in Bandung and Mal Lippo Cikarang in Greater Jakarta. Some $3 million will be spent in total on both malls to boost traffic and rental income.

The stock gained 0.5 cents to close at 59 cents yesterday. LMIR Trust has shed 11.3 per cent since the start of the year.