Lippo Malls Indonesia Retail Trust (D5IU) Q2 2024 earnings summary

Executive summary

• 2Q 2024 saw rental revenue of S$27.0M (▼4.3% YoY) and gross revenue of S$48.1M (▼5.1% YoY), mainly due to IDR depreciation against SGD.

• Net property income declined 9.2% YoY to S$29.4M.

• Portfolio occupancy remained stable at 79.9%, above the industry average.

• Visitor traffic recovered to 72.3% of pre-COVID levels as of June 2024, with some malls exceeding 2019 traffic.

• Achieved stable operational recovery in 2Q 2024, supported by strategic asset management and active rental renewals.

Financial highlights

• Rental revenue: S$27.0M (▼4.3% YoY); gross revenue: S$48.1M (▼5.1% YoY); net property income: S$29.4M (▼9.2% YoY).

• Decline in SGD terms mainly due to 4.4% IDR depreciation; in IDR terms, topline grew YoY.

• Net property income in IDR slipped 2.7% YoY due to lower net reversal for impairment loss.

• Gearing ratio at 44.96% as of June 2024, close to MAS regulatory limit.

• Cash and equivalents: S$50.5M, down from S$140.3M at end-2023.

Outlook and guidance

• Bank Indonesia projects GDP growth of 4.7–5.5% for 2024; inflation within 1.5–3.5% target.

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

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

• Indonesia's inflation eased to 2.51% in June 2024, but the Rupiah remains volatile.