LMIRT announces 9.2% y-o-y decline in 2QFY2024 NPI

Khairani Afifi Noordin
2-min read

LMIRT has largely transited into an Indonesian rupiah-denominated financing structure.

The manager of Lippo Malls Indonesia Retail Trust D5iu (LMIRT) has reported a net property income of $29.4 million in its 2QFY2024 ended June, down 9.2% y-o-y.

This is due to lower net reversal for impairment loss on trade receivables compared to the previous corresponding quarter.

Rental revenue declined 4.3% y-o-y to $27 million, while gross revenue was down by 5.1% y-o-y to $48.1 million.

With its sponsor introducing the trust to their domestic Indonesian relationship banks, LMIRT has largely transited into an Indonesian rupiah-denominated financing structure, which acts as a natural hedge against the trust’s Indonesian rupiah-denominated asset base. This consequently reduces foreign currency risk going forward, the manager says in a filing.

The trust has fully repaid its Singapore dollar-denominated bank loans in early June, repurchased or fully redeemed its 2024 Notes due in June and significantly reduced its outstanding 2026 Notes due in February 2026 to US$22.6 million ($30.36 million) with proceeds from IDR8.5 trillion of Indonesian rupiah loan facilities.

LMIRT’s weighted average maturity of debt increased significantly from 2.75 years as of end December 2023 to approximately 6.94 years as at July 29.

“Nevertheless, with our leverage ratio at an elevated level of 44.96% as at June 30, obligation to meet the monthly principal loan repayments under our Indonesian rupiah facilities and liquidity needs to fund our operational capital expenditures and asset enhancement initiatives, the trust will need to continue to exercise prudence with our distributions to unitholders and holders of our perpetual securities,” says the manager’s CEO James Liew.

Units in LMIRT closed at an unchanged 2 cents on July 29.

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