SINGAPORE (Yosefardi) – LMIRT Management Limited, the manager of Lippo Malls Indonesia Retail Trust (LMIR Trust), to announced that LMIR Trust achieved a Net Property Income of S$37.9 million for the period from 1 April 2013 to 30 June 2013 (2Q 2013), up 23.2% year-on-year.
The increase was mainly due to the contributions from the six new malls acquired in 4Q 2012 and the positive rental reversions of 15.5% within the existing malls. For 1H 2013, Net Property Income grew 22.0% year-on-year to S$75.1 million.
Total outstanding debt was S$472.5 million as at June 30, 2013, and approximately 85% of Interest Bearing Debts are at fixed interest rates.
LMIR Trust’s Sponsor, PT. Lippo Karawaci Tbk (LK), is one of the largest listed property developers and mall operators in Indonesia. With its strategic intention to grow LMIR Trust as the cornerstone of its third pillar of growth, the Sponsor has provided the Trust with a right of first refusal over its portfolio of 15 malls to be built across Indonesia in the next three years.
Indonesia continues to perform well with a GDP growth of 6% in the first quarter of 2013. It is still one of the most attractive G20 countries as well as ASEAN’s largest economy.
With a growing population, mega trend of urbanization and middle-class expansion, Indonesia economy will likely remain buoyant.
The future retail space supply will likely be limited as the shopping centre moratorium issued by previous Jakarta Governor will continue to play out and there is no official announcement on any additional projects yet in 2013. This will create advantage to shopping mall owners as retail space in Jakarta will not be easy to secure in the next few years.
The outlook for quality retail space is expected to remain positive in the next 12 months as both local and foreign retail players will continue to eye the growing Indonesia retail market. Higher projected income per capita coupled with a large growing consumer class is expected to drive demand for retail space to higher level.