Lippo Malls Indonesia Retail Trust (D5IU) Q4 2024 earnings summary

Executive summary

• Gross revenue rose 2.9% year-over-year to S$49.3 million in 4Q24, reflecting operational recovery.

• Rental revenue increased 1.5% year-over-year to S$26.9 million in 4Q24, driven by a 70.1% surge in carpark income.

• Portfolio occupancy improved to 81.2% as of 31 Dec 2024, above the industry average.

• Active asset enhancement and tenant management supported performance amid high interest rates and FX volatility.

• Visitor traffic recovered to 72.5% of pre-COVID levels, with ongoing challenges in consumer behavior and competition.

Financial highlights

• FY2024 gross revenue declined 1.4% to S$194.6 million due to IDR depreciation; net property income fell 5.5% to S$115.7 million.

• In IDR terms, FY2024 rental and gross revenues grew 2.3% and 3.1% respectively, but net property income dipped 1.2%.

• 4Q24 carpark revenue jumped 70.1% year-over-year to S$2.2 million.

• Total property operating expenses rose 11.2% year-over-year to S$21.5 million, mainly from higher other property operating expenses.

• Investment properties valued at S$1,562.0 million as of 31 Dec 2024, up 1.6% from prior year.

Outlook and guidance

• Plans for targeted refurbishments and asset enhancements in 2025–2026 to attract tenants and shoppers.

• Focus on disciplined financial management, gradual loan repayment, and addressing ICR regulatory breach.

• Continued focus on sustainability, with EDGE certification and solar panel installations at select malls.

• Operational performance is gradually improving, but shopper traffic is expected to remain below pre-pandemic levels for most malls.