LMIRT’s income inches up 2.6% to $40.83m

Thanks to positive rental reversions, forex gains.

Lippo Malls Indonesia Retail Trust’s (LMIRT) net property income for the quarter inched up 4.6% to $40.83m, while DPU grew 5.1% to 0.83 S cents.

According to a report by OCBC, the increase was pushed largely by positive rental reversions at existing malls and the acquisitions of LPB and PICON in July 2015. This was offset, though, by the IDR depreciating against SGD.

Meanwhile, revenue for the quarter climbed 8.5% to $45.5m.

OCBC also notes that in spite of the uncertain global economic outlook, strong fundamentals within the country have helped support LMIRT’s operational performance in the past quarter.

Moreover, LMIRT’s average rental reversion was positive at 7.5% in Q1, a 5.7ppt QoQ climb compared to 13.2% in 4Q15.

In the near term, retail space supply is expected to be limited in Jakarta, thus providing a favorable market condition for existing shopping mall owners.