Investor Relations


Financial Information

Print This Email This

2018 SECOND QUARTER UNAUDITED FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

Profit & Loss

Profit & Loss 2Q2018

Balance Sheet

Balance Sheet 2Q2018

Review of Performance

2Q 2018 vs 2Q 2017

Gross rental income is S$0.5 million lower than 20 2017, mainly due to weakening of Indonesian Rupiah against Singapore Dollar, and lower rental income as a result of expiry of the master leases over the 7 Retail Spaces. The impact from weakening of Indonesian Rupiah and expiry of the master leases over the 7 Retail Spaces is partly offset by additional rental income due to acquisition of Lippe Plaza Kendari in June 2017, Lippe Plaza Jogya and Kediri Town Square in December 2017 respectively.

Other revenue is S$3.3 million higher than 20 2017, mainly due to collection of service charge and utilities recovery charges directly from tenants of the malls and Retail Spaces.

Property operating expenses are S$6.4 million higher than 20 2017, mainly due to:

  1. costs incurred of S$4.2 million (20 2017: Nil) for maintenance and operations of the malls and Retail Spaces; and
  2. net allowance for doubtful debts made in 20 2018 of S$1.2 million (as opposed to a net reversal of allowance of doubtful debts in 20 2017 of S$0.4 million).

Income tax expense is S$2.4 million higher than 1H 2017 mainly due to the new tax regulations in Indonesia which came into effect on 2 January 2018. Refer to item 1 (a) (i) Statement of Total Return on page 3 of the results announcement for details on the new tax regulations.

Other losses (net) comprise realised and unrealised foreign currency gains/(losses) and realised and unrealised hedging contracts gainsf(losses). It also includes amortisation ofintangble assets in relation to LPB, PICON, Kuta, Kendari and Jogja.

Distribution to perpetual securitities holders is S$1.7 million higher than 20 2017, due to issuance of S$120 million of perpetual securities at a distribution rate of 6.6% per annum in June 2017.

The Trust has foreign currency options contracts to mitigate its exposure on currency movement as the majority of the Trust's income is in Indonesian Rupiah. The unrealised gain/loss on foreign currency options contracts is a non-cash item and does not affect the amount of distribution to unitholders.

1H 2018 vs 1H 2017

Gross rental income is S$1.2 million lower than 1 H 2017, mainly due to weakening of Indonesian Rupiah against Singapore Dollar, and lower rental income as a result of expiry of the master leases over the Retail Spaces. The impact from weakening of Indonesian Rupiah and expiry of the master leases over the 7 Retail Spaces is partly offset by additional rental income due to acquisition of Lippe Plaza Kendari in June 2017, Lippe Plaza Jogya and Kediri Town Square in December 2017 respectively.

Other revenue is S$4.5 million higher than 1 H 2017, mainly due to collection of service charge and utilities recovery charges directly from tenants of the malls and Retail Spaces.

Property operating expenses are S$9.1 million higher than 1H 2017, mainly due to:

  1. costs incurred of S$4.8 million (1H 2017: Nil) for maintenance and operations of the malls and the Retail Spaces; and
  2. net allowance for doubtful debts made in 1H 2018 of S$1.9 million (as opposed to a net reversal of allowance of doubtful debts in 1H 2017 of S$0.8 million).

Income tax expense is S$4.0 million higher than 1H 2017 mainly due to the new tax regulations in Indonesia which came into effect on 2 January 2018. Refer to item 1 (a) (i) Statement of Total Return on page 3 of the results announcement for details on the new tax regulations.

Other losses (net) comprise realised and unrealised foreign currency gains/(losses) and realised and unrealised hedging contracts gainsf(losses). It also includes amortisation ofintangble assets in relation to LPB, PICON, Kuta, Kendari and Jogja.

Distribution to perpetual securitities holders is S$3.7 million higher than 1H 2017, due to issuance of S$120 million of perpetual securities at a distribution rate of 6.6% per annum in June 2017.

The Trust has foreign currency options contracts to mitigate its exposure on currency movement as the majority of the Trust's income is in Indonesian Rupiah. The unrealised gain/loss on foreign currency options contracts is a non-cash item and does not affect the amount of distribution to unitholders.

Commentary

Indonesia's economy grew 5.06% in the first quarter of 2018, down from 5.19% in the previous quarter, weighed down by weakness in consumption and lower exports. Bank Indonesia's growth outlook for 2018 remained at 5.1%- 5.5%, against growth of 5.07% in 2017.

Indonesia's annual inflation rate came in at 3.12% in June, compared to 3.23% in May. The consumer price index rose 0.59% on a monthly basis in June, due to rising demand for food and transportation during the Muslim fasting month of Ramadan. Year-to-date, Indonesian inflation has accumulated to 1.90% in the first six months of 2018 and the year-end figure is expected to fall well within the central bank's full-year 2018 inflation target range of2.5-4.5%.

On the retail front, retail sales in Indonesia rose 8.3% in May, compared to 4.1% in April. The more vigorous pace of growth was contributed by the expansion in sale of clothes, food and tobacco sales during the month.

Copyright 2017 © Lippo Malls Indonesia Retail Trust | Privacy Policy