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2019 THIRD QUARTER UNAUDITED FINANCIAL STATEMENTS AND DISTRIBUTION ANNOUNCEMENT

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Profit & Loss

Profit & Loss 3Q2019

Balance Sheet

Balance Sheet 3Q2019

Review of Performance

3Q 2019 vs 3Q 2018

Gross rental income is S$2.3 million higher than 3Q 2018, mainly due to positive rental reversion and improved exchange rate from Rupiah against Singapore dollars. Other revenue is S$2.1 million higher than 3Q 2018, mainly due to higher income from service charge and utilities recovery charges as a result of better reversion.

Property operating expenses are S$0.2 million lower than 3Q 2018, mainly due to net reversal of allowance for doubtful debts of S$1.9 million in 3Q 2019 as opposed to net allowance for doubful debts of S$2.1 million in 3Q 2018. This is also partly offset by the higher expenses for renewing of certain licenses.

Finance expenses are S$2.2 million higher than 3Q 2018 mainly due to higher all in cost of US$250.0 million bond issued in June 2019, which the proceeds were mainly used to refinance the S$175.0 million 4-year term loan and the S$120.0 million revolving credit facilities.

Other gains/(losses) (net) comprise realised and unrealised foreign exchange gains/(losses) and realised and unrealised hedging contracts gains/(losses). It also includes amortisation of intangible assets in relation to Picon, Kuta, Kendari and Jogja.

The Trust has various hedging contracts to mitigate its exposure on foreign currencies and interest rates movements. The unrealised gain/(loss) on various hedging instruments is non-cash item and does not affect the amount of distribution to unitholders.

YTD 2019 vs YTD 2018

Gross rental income is S$2.9 million lower than YTD 2018, mainly due to lower rental income from Lippo Plaza Batu and Palembang Icon due to the expiry of the master leases in July 2018 and lower casual leasing income.

Other revenue is S$39.7 million higher than YTD 2018, 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$34.8 million higher than YTD 2018, mainly due to costs incurred of S$61.0 million (YTD 2018: S$24.4 million) for maintenance and operations of the malls and the Retail Spaces.

Finance expenses are S$4.6 million higher than YTD 2018, mainly due to higher all in cost of US$250.0 million bond issued in June 2019, which the proceeds were mainly used to refinance the S$175.0 million 4-year term loan and the S$120.0 million revolving credit facilities.

Other gain/(losses) (net) comprise realised and unrealised foreign exchange gains/(losses) and realised and unrealised hedging contracts gains/(losses). It also includes amortisation of intangble assets in relation to Lippo Plaza Batu, Picon, Kuta, Kendari and Jogja.

The Trust has various hedging contracts to mitigate its exposure on foreign currencies and interest rates movements. The unrealised gain/(loss) on various hedging instruments is non-cash item and does not affect the amount of distribution to unitholders.

Commentary

Bank Indonesia cut its key interest rate for a third straight month to 5.25% in September, in a bid to drive economic growth in an increasingly uncertain macroeconomic environment and a slowing global economy. This goes in tandem with the recent rate-cutting moves by the US Federal Reserve. In his annual budget speech, President Jokowi announced that the Indonesian government plans to raise spending by 8.5% to Rp2,540 trillion in 2020 with an economic growth target set at 5.3% .

Inflation dipped to 3.39% in September from 3.49% in August, close to Bank Indonesia's mid-point target of 3.5%. Driven largely by lower prices for foodstuff, consumer prices dipped 0.27% month-on-month as compared with a 0.12% increase in August. Also weaker were prices for housing, utilities, education, recreation and sports and healthcare, offset by higher prices in transportation, communication and financial services, as well as clothing. Core inflation in September registered at 3.32%, above forecasts of 3.29%, the highest since February 2017 .

Retail sales increased 1.1% year-on-year in August, a reduction from the 2.5% increase in the previous month. The slowdown was mainly driven by lower sales in food, beverages, tobacco, clothing, fuel, communication equipment & information, as well as cultural and recreational goods, offset by an increase in sales of household equipment. Month-on-month, retail sales dipped 2.1% in August, following a 5.3% reduction in July .

Expiry of Master Leases at Lippo Mall Kemang on 16 December 2019

PT Kemang Mall Terpadu, a wholly owned Indonesian subsidiary of LMIR Trust, had on 17 December 2014 acquired Lippo Mall Kemang. PT Kemang Mall Terpadu (the "Lessor") had granted master leases over certain areas of Lippo Mall Kemang in relation to the car park space, the casual leasing space and the area known as the Avenue of the Stars to the Sponsor Lessees for a period of three years from 17 December 2014 to 16 December 2017 (the "LMK Master Leases"), with an option to require the Sponsor Lessees to extend the term of the LMK Master Leases for an additional period of up to 24 months. The Lessor has exercised its option to extend the term of the LMK Master Leases, with the extended term expiring on 16 December 2019.

With the LMK Master Leases expiring on 16 December 2019, LMIRT Management Ltd, the Manager of LMIR Trust, wishes to provide an update on the latest development and business conditions of Lippo Mall Kemang, well as the pro forma financial effects on the expiry of Kemang Master Leases. Please refer to LMIR Trust's Q3 2019 Results Presentation (slides 9 to 14) for further details.

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