Landmark REIT (D5IU) Q2 2026 earnings summary

Executive summary

• Achieved topline growth in 1H 2026, with gross revenue up 2.8% to S$103.0 million, driven by higher rental and carpark income following a change in management arrangement, now recognized on a gross basis.

• Net property income rose 4.9% to S$61.1 million, and net income increased 48.1% to S$34.82 million, with total return for the period at S$40.93 million, up 77.8% from 1H 2025.

• Portfolio occupancy remained strong at 86.5% as of 30 June 2026, well above the industry average of 77.6%.

• Approximately 79.3% of expiring leases in 1H 2026 were renewed, with a marginal dip in WALE due to new leases on shorter tenures.

• Ongoing and completed asset enhancement initiatives (AEIs) across several malls to attract key tenants and improve mall attractiveness.

Financial highlights

• Rental revenue rose 3.5% year-over-year to S$56.5 million; carpark revenue up 9.3% to S$6.23 million.

• Net property income margin improved, with property operating expenses stable at S$41.87 million.

• Finance costs fell 28.9% to S$20.87 million due to lower debt and interest rates.

• Earnings per unit was 0.26 cents, down from 0.30 cents in 1H 2025, reflecting a higher unit base after the rights issue.

• Net asset value per unit dropped to 2.50 cents, reflecting the impact of IDR depreciation.

Outlook and guidance

• Indonesia's economy expanded 5.61% in Q1 2026, with further stimulus planned for 2H 2026 to support households and businesses.

• Focus remains on stable operational performance, targeted AEIs, and sustaining high occupancy and shopper traffic.

• Manager intends to resume distributions to Unitholders in FY2027, subject to improved financial position and market conditions.

• Ongoing economic uncertainties, FX volatility, and inflationary pressures may impact capital structure and compliance with covenants.

• Prudent capital management and resilient tenant mix remain priorities amid a high interest rate environment.