Lippo Malls Indonesia Retail Trust (LMIRT) has reported a lower net property income for the FY2024 ended Dec 31, 2024 of $115.7 million, down 5.5% y-o-y.
The trust’s rental revenue came in 2.2% y-o-y lower for the FY2024 at $108.2 million. In its reporting currency, the trust saw a 4.4% depreciation in Indonesian rupiah against the Singapore dollar.
Gross revenue edged down 1.4% y-o-y to $194.6 million.
For the 4QFY2024 reporting period, the trust saw a 2.8% y-o-y decrease in net property income of $27.8 million.
Rental revenue and gross revenue for the 4QFY2024 saw a 1.5% y-o-y increase and 2.9% y-o-y increase to $26.9 million and $49.3 million respectively, from the previous reporting period.
The trust says that topline growth was mainly due to an increase in carpark income by 70.1% in Singapore dollar terms. In 4Q2024, the trust entered a new carpark management agreement with the operator which resulted in higher gross carpark income.
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The group says that net property income dipped largely on net allowance for impairment loss on trade receivables and higher property operating and maintenance expenses.
The trust did not declare any distributions per unit for the FY2024, consistent with the FY2023 reporting period.
As at Dec 31, 2024, the group had a total debt of $735.2 million, and gearing stood at 44.78%. Its weighted average maturity of debt came in at 6.53 years, while all-in cost came in at 8.54%.
As at Dec 31, 2024, the interest coverage ratio (ICR) of LMIRT is 1.36 times. All REITs are subject to a minimum ICR threshold of 1.5 times and aggregate leverage limit of 50% according to the Monetary Authority of Singapore.
The trust says that it will continue to exercise prudence in capital management and does not intend to incur additional borrowings until the breach of ICR is rectified.
Units in LMIRT closed 0.1 cents higher or 6.667% up at 1.6 cents on Feb 25.
