Letter to Unitholders
OPERATIONAL PERFORMANCE
/UR PORTFOLIO MALLS REMAIN WELL OCCUPIED AT APPROXIMATELY
94.7% at end 2014, which is well above the industry
average.
,EASES FOR
SQM OF TOTAL .,! EXPIRED THROUGHOUT
2014, and we were able to achieve an average positive
rental reversion rate of 10.5%. Furthermore, as we have
BEEN INTRODUCING ANNUAL STEP UP PROVISION INTO THE RENEWED
and new leases since late 2009, annual rental growth
FROM SUCH LEASES ARE EXPECTED TO BECOME MORE REGULAR
This will smoothen the earnings profile and supports overall
rental growth.
These developments, together with a stable quarterly
$05 GROWTH IN
DEMONSTRATE STRONG TESTAMENT TO
management’s strategy and a continued positive outlook
on Indonesia.
ACTIVE CAPITAL MANAGEMENT
Leveraging on its favourable credit profile and prudent
capital management policies, LMIR Trust was able to secure a
YEAR TERM LOAN FACILITY OF 3'$ MILLION FROM A SYNDICATE
of three international banks to finance the acquisition of
,-+ IN $ECEMBER
OUTLOOK
The economy of Indonesia continues to be supported
by burgeoning domestic demand, increasing foreign
investment and government infrastructure spending.
The middle class continues to grow in number and with
higher disposable income whilst the urban population
ACCOUNTS FOR APPROXIMATELY
OF THE TOTAL POPULATION
High retail spending growth will continue to support the
EXPECTATION OF DOUBLE DIGIT RETAIL SALES GROWTH FOR THE COMING
years, providing the basis for continuing strong performance
OF OUR PORTFOLIO 4HE GROWTH IN ECONOMIC ACTIVITIES IS EXPECTED
to provide LMIR Trust with a tremendous platform from
WHICH TO FURTHER ENHANCE GROWTH AND RETURN TO 5NITHOLDERS
and we look forward to benefit from these opportunities.
Management will continue to look out for good yield
accretive assets in Indonesia to take advantage of the strong
GDP and demand by the growing middle class. Management
will also continue to focus on improving the tenancies in
EXISTING ASSETS THROUGH ASSET ENHANCEMENT INITIATIVES AND
TENANCY MIX
ACKNOWLEDGEMENT
7E WISH TO EXPRESS OUR APPRECIATION TO OUR TENANTS AND
business partners for their loyal support, and special
GRATITUDE TO OUR 5NITHOLDERS FOR THE FAITH AND CONlDENCE
in us as the Manager for LMIR Trust. Last but not least,
we like to acknowledge the outstanding contribution from
our staff over the past year.
On behalf of the Board and the management of LMIRT
Management Ltd, we look forward to working together
with you to embark on the transformation journey of the
Trust and achieve new milestones in 2015 and beyond.
Albert Saychuan Cheok
Chairman of the Board & Independent Director
Alvin Cheng
%XECUTIVE $IRECTOR OF THE "OARD #%/
14
LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
