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Lippo Malls Indonesia Retail Trust – 3 Things That Investors Should Know From Its Quarterly Presentation

Lippo Malls Indonesia Retail Trust (SGX: D5IU) is the first and only Indonesian retail estate investment trust (REIT) which was listed on the Singapore Exchange on 19 November 2007.

It has a diversified portfolio of 21 retail malls and seven retail spaces across Indonesia as of December 2016.

The REIT recently presented its results for the second quarter ended 30 June 2017. In this article, we will look at three particular pieces of information from the presentation.

Overall results

Source: Lippo REIT FY17 Quarter 2 Presentation

Overall, a positive quarter for Lippo, with all metrics performing well as compared to last year.

The positive performance was mainly driven by rental reversions for the existing malls as well as the maiden contribution from Lippo Mall Kuta, which was acquired in December 2016.

Rental reversion rate

Source: Lippo REIT FY17 Quarter 2 Presentation

The above is a quick overview of the rental reversion rate for Lippo since 2011.

What’s useful to know here is that these rates have ranged between 5% and 27.1%, with an average of about 7-9%.

In the second quarter of FY17, the rental reversion rate was 13%.

Performance of Indonesia as a whole

Lippo gave the following pieces of information about its country of operations:

  1. Indonesia economy grew in the first quarter, with gross domestic production up by 5.01% during the period.
  2. Indonesia’s annual growth in retail sales in June 2017 was 6.7%, according to Bank Indonesia.

Conclusion

As a whole, Lippo REIT continued its positive performance in the second quarter, after delivering a positive result in the first quarter of FY17.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.