Page 15 - ar2013

13
LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2013
BDUJWJUJFT BOE JT FYQBOEJOH 0WFS PG
(%1 JT DVSSFOUMZ DPNJOH GSPN EPNFTUJD
demand, fueled by a young demographic
profle and benign infation. On the back
of this, retail spending growth has been
SVOOJOH BU EPVCMF EJHJU TJODF BOE JT
GPSFDBTU UP DPOUJOVF GPS UIF OFYU ZFBST
This suggests that any negative impact on
economic growth froma potentiallyweaker
trade balance is likely tobemore thanmade
up by strong domestic demand, foreign
investment, and increased government
spending, particularly during the election
ZFBS JO
This retail spending strength will continue
to underpin the performance of LMIRTrust’s
portfolio andmore so as the supply of new
retail mall space is projected to remain
NPEFTU GPS UIF UJNF CFJOH OFBS UFSN
CURRENCY VOLATILITY
%VSJOH UIF OE IBMG PG B OVNCFS
of emerging market countries, notably
Brazil, India, Indonesia, South Africa and
Turkey saw sharp depreciation in their
currencies. As such, our operating results
and distributable income for both Q3 and
2 PG XFSF OFHBUJWFMZ JNQBDUFE
by the depreciation of the Indonesian
3VQJBI *%3 – this is despite of the
GPSFJHO FYDIBOHF IFEHJOH DPOUSBDUT XIJDI
XFSF QVU JO QMBDF BT XFMM BT UIF
Z P Z JODSFBTF JO /FU 1SPQFSUZ *ODPNF JO
*%3 UFSNT
5IF *%3 IBT NFBOXIJMF SFDPWFSFE CZ
BQQSPYJNBUFMZ TJODF FOE %FDFNCFS
UP FOE PG .BSDI XIJDI IBT
been part of Indonesia’s recent fnancial
market ral ly and return of positive
investment sentiments.
/FWFSUIFMFTT BDDPSEJOH UP B SFDFOU SFQPSU
GSPN UIF 6OJUFE /BUJPOT , in the outlook
GPS NBKPS VODFSUBJOUJFT BOE
WPMBUJMJUZ JO GPSFJHO FYDIBOHF NBSLFUT
will still be associated with currencies
of emerging economies. As such, in
anticipation of the possible continued
XFBLOFTT BOE PS GVSUIFS EFQSFDJBUJPO PG
UIF *%3 -.*35SVTU IBT FOUFSFE JOUP B IJHIFS
MFWFM PG GPSFJHO FYDIBOHF IFEHJOH UP
ensure that the distributable income of the
Trust will not be signifcantly afected by
UIF DVSSFODZ NBSLFU WPMBUJMJUZ GPS ':
A YEAR OF CONSOLIDATION
IBE CFFO B ZFBS PG BTTFU DPOTPMJEBUJPO
and rental enhancements.
%VSJOH UIF MBTU RVBSUFS PG UIF 5SVTU
BDRVJSFE B UPUBM PG TJY NBMMT GSPN UIJSE
parties as well as from the Sponsor, PT
-JQQP ,BSBXBDJ 5CL 5IFTF BDRVJTJUJPOT
IBWF BEEFE BO FTUJNBUFE 4 N UP UIF
Total Gross Revenue of LMIR Trust, whilst
diversifying our portfolio geographically.
Subsequent to these acquisitions, the
REIT Manager, together with the Property
.BOBHFS XFSF BCMF UP FYUSBDU WBMVF
GSPN UIFTF BTTFUT BOE FOIBODFE UIF /FU
1SPQFSUZ *ODPNF PG UIF QPSUGPMJP CZ
JO 4 UFSNT BOE JO *%3 UFSNT
4JODF UIF 5SVTU IBT BDRVJSFE B UPUBM
of eight new assets, for an aggregate
DPOTJEFSBUJPO PG BQQSPYJNBUFMZ 4 N
which together with the positive rental
SFWJTJPOT IBT DPOUSJCVUFE UP B JODSFBTF
JO 3FOUBM 3FWFOVF CFUXFFO BOE
OPERATIONAL PERFORMANCE
Our portfolio malls remain well occupied
BU BQQSPYJNBUFMZ BU FOE XIJDI
JT BCPWF UIF JOEVTUSZ BWFSBHF PG 2.
"U UIF TBNF UJNF MFBTFT GPS
TRN FRVJWBMFOU UP PG UPUBM /-"
FYQJSFE UISPVHIPVU BOE XF XFSF
able to achieve an average positive rental
SFWFSTJPO SBUF PG 'VSUIFSNPSF SFOUBM
JODSFBTFT GSPNFYJTUJOH MFBTFT BSF FYQFDUFE
to become more regular as we introduce
BOOVBM TUFQ VQ SFOUBM QSPWJTJPOT JOUP UIF
renewed leases and new rental contracts.
This will smoothen the earnings profle
and supports rental growth.
As a result of the organic growth and
the effect of the acquisitions in the
QSFWJPVT ZFBS ': (SPTT 3FOUBM *ODPNF
JODSFBTFE CZ UP 4 NJMMJPO BOE
/FU 1SPQFSUZ *ODPNF JODSFBTFE CZ
UP 4 NJMMJPO %JTUSJCVUJPO QFS VOJU
h%16h GPS UIF öOBODJBM ZFBS FOEFE TU
%FDFNCFS XBT DFOUT WFSTVT
DFOUT GPS ':
These developments, coupled with an
BOOVBMJTFE %16 :JFME PG CBTFE PO
VOJU QSJDF PG 4 BU FOE BT XFMM
as having the market capitalisation of
-.*3 5SVTU PG 4 CJMMJPO BU ZFBS FOE
demonstrate strong testament to the
NBOBHFNFOUhT TUSBUFHZ BOE B DPOUJOVFE
positive outlook on Indonesia.
ACTIVE CAPITAL MANAGEMENT
Riding on the favourablemarket sentiment,
-.*3 5SVTU GVS UIFS SBJTFE 4 N JO
0DUPCFS UISPVHI UIF JTTVF PG B ZFBS
CPOE BU B DPVQPO PG QFS BOOVN
The proceeds from the bond issue was
subsequently used to repay a term loan
PG 4 N JO +BOVBSZ UIFSFCZ
FYUFOEJOH UIF PWFSBMM MPBONBUVSJUZ QSPöMF
GSPN ZFBST UP ZFBST
At the same time, leveraging on positive
investor interests, LMIRTrust also increased
JUT FRVJUZ CBTF JO/PWFNCFS CZ JTTVJOH
N OFX VOJUT UP TFMFDUFE JOWFTUPST BOE
SBJTJOH BCPVU 4 N PG BEEJUJPOBM GVOET
8PSME &DPOPNJD 4JUVBUJPO BOE 1SPTQFDUVT *4#/
2 $PMMJFST .BSLFU 3FQPSU 2 JO SFTQFDU PG UIF (SFBUFS +BLBSUB SFHJPO