Landmark REIT (D5IU) Q3 2024 earnings summary

Executive summary

• Portfolio consists of 22 retail malls and 7 retail spaces in Indonesia, focused on income-producing retail assets.

• 3Q 2024 saw rental revenue of S$26.7M, down 4.7% year-over-year, and gross revenue of S$48.0M, down 3.6% in SGD terms, mainly due to a 5% IDR depreciation against SGD.

• Net property income declined 6.5% year-over-year to S$28.6M for 3Q 2024, and for the nine months ended 30 September 2024, net property income was $87.9M, a 6.3% decrease year-over-year.

• No distributions declared for unitholders or perpetual securities holders, as cash conservation measures remain in place.

• Portfolio occupancy improved to 80.1% as of 30 September 2024, above the industry average.

Financial highlights

• Rental revenue for the nine months was $81.3M, down 3.3% year-over-year; car park revenue rose 9.7%.

• Net loss for the nine months was $57.0M, compared to a profit of $1.7M in the prior year.

• Net asset value per unit at 30 September 2024 was 5.67 cents.

• Cash and cash equivalents (unrestricted) fell to $16.3M from $39.7M at end-2023.

• In IDR terms, 3Q 2024 rental and gross revenue grew 1.4% and 2.6% year-over-year, respectively.

Outlook and guidance

• Manager expects operating environment to remain challenging due to cautious retailer sentiment and macroeconomic uncertainties.

• Operational performance is expected to improve gradually, with stable occupancy and ongoing asset enhancements.

• Prudent capital management and no distributions until financial and cashflow position improves.