LMIR Trust 2Q 2020 DPU Declines 8.3%
July 28, 2020 — LMIRT Management Ltd, the manager of Lippo Malls Indonesia Retail Trust, today announced a distribution per unit (DPU) of 0.11 Singapore cents for the second quarter ended 30 June 2020, amid the Covid-19 pandemic.
Chief Executive Officer of the REIT Manager, Mr James Liew said, “The Covid-19 pandemic has exerted widespread impact on the operating environment and the economy in Indonesia. In support of the Indonesian government’s call to help curb the spread of the coronavirus, the Trust had closed all its malls by 1 April, which affected our 2Q performance. Nevertheless, the situation is steadily improving with the resumption of operations at the malls at shorter operating hours in light of the pandemic situation in Indonesia, giving comfort to the Trust in making a prudent distribution to our unitholders.”
The temporary closure of the Trust’s retail malls and retail spaces commenced on 27 March, except for essential services such as supermarkets and pharmacies which remained open at shorter operating hours. With tenants affected by the closure being extended rental waivers, the Trust
recorded gross rental income of S$12.6 million for 2Q 2020, compared to S$36.6 million in 1Q 2020. A 40% discount on service charge was also extended to tenants, which, along with the provision of free parking at some malls during the closure period, led to lower ancillary income. Consequently, total gross revenue for 2Q 2020 was S$27.4 million, compared with S$64.9 million in 1Q 2020. The net property income (“NPI”) came in at S$12.8 million in 2Q 2020 versus S$39.8 million in 1Q 2020.
Alleviating the reduction in rental income following the temporary closure of the retail malls and spaces, cost-saving measures were implemented to cut property operating expenses, resulting in a decline of 42.1% to S$14.6 million in 2Q 2020 from S$25.2 million in 1Q 2020. Taking this into account, the Trust contained the loss to S$7.7 million in 2Q 2020. Utilising retained income of S$14.4 million from previous quarters to set off against the loss incurred in 2Q 2020 and pay the distribution to its perpetual security holders in June, a residual amount of S$3.1 million will be distributed for 2Q 2020, marginally less than the S$3.2 million distributed in 1Q 2020.
Read more here..