Lippo Malls Indonesia Retail Trust (D5IU) Q3 2024 earnings summary

Executive summary

• 3Q 2024 rental revenue was S$26.7M, down 4.7% YoY in SGD, but up 1.4% in IDR, with gross revenue at S$48.0M, down 3.6% in SGD and up 2.6% in IDR, mainly due to a 5% IDR depreciation against SGD.

• Net property income declined 6.5% YoY to S$28.6M, but only 0.5% in IDR terms, supported by operational recovery and asset management.

• Portfolio occupancy rose to 80.1% as of 30 September 2024, above the industry average and up from 79.9% sequentially.

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

• Asset enhancement and proactive tenant management drove a 7.9% YTD rental reversion.

Financial highlights

• Rental revenue fell 4.7% YoY to S$26.7M; gross revenue dropped 3.6% to S$48.0M; net property income decreased 6.5% to S$28.6M.

• In IDR, 3Q 2024 rental revenue grew 1.4% to Rp320.5B; gross revenue up 2.6% to Rp574.5B; net property income down 0.5% to Rp343.3B.

• 9M 2024 rental revenue in SGD down 3.3% YoY; gross revenue down 2.7%; net property income down 6.3%.

• Gearing ratio increased to 44.97% as of 30 September 2024.

• Cash and cash equivalents declined to S$33.5M from S$140.3M at year-end 2023.

Outlook and guidance

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

• Prudent capital management and cautious approach to distributions will continue to maintain financial flexibility and meet loan obligations.

• Inflation in Indonesia is expected to remain below 2% in 2024, with GDP targeted at 5.2%.

• Focus remains on operational efficiency and adapting to Indonesia's competitive retail market.