Landmark REIT (D5IU) H1 2024 earnings summary

Executive summary

• Portfolio consists of 22 retail malls and 7 retail spaces in Indonesia, focused on long-term income generation, with stable operational recovery in 2Q 2024 supported by strategic asset management and active rental renewals.

• Portfolio occupancy remained stable at 79.9%, above the industry average, with shopper traffic recovering to 72.3% of pre-COVID levels as of June 2024, and some malls exceeding 2019 traffic.

• Operating environment remains challenging due to global and domestic economic uncertainties, high inflation, and volatile FX rates.

• No distributions declared for unitholders or perpetual securities holders to conserve cash and maintain capital structure.

Financial highlights

• Rental revenue in SGD fell 4.3% year-over-year to S$27.0M in 2Q 2024; gross revenue declined 5.1% to S$48.1M; net property income dropped 9.2% to S$29.4M.

• In IDR terms, rental revenue rose 2.6% and gross revenue increased 1.7% year-over-year in 2Q 2024.

• Net loss for 1H 2024 was $19.8M, compared to a profit of $14.4M in 1H 2023.

• Cash and cash equivalents at 30 June 2024 were $50.5M, down from $140.3M at year-end 2023.

• Aggregate leverage ratio at 30 June 2024 was 44.96%, near the MAS regulatory limit.

Outlook and guidance

• Bank Indonesia projects GDP growth of 4.7–5.5% for 2024; inflation eased to 2.51% in June 2024, within central bank targets, but the Rupiah remains volatile.

• Gradual recovery in visitor traffic and stable occupancy expected to continue, supported by active asset management and lease renewals.

• Prudent approach to distributions and capital management will continue until financial and cashflow position improves.