Lippo Malls IRT 4Q14 revenue up 6.2% YoY to $36m

Due largely to positive rental reversions.

During 4Q14 and FY14, Lippo Malls Indonesia Retail Trust achieved healthy average rental reversions of 10.8% and 10.4%, respectively, aided by favourable demand and supply dynamics.

According to a report by OCBC, LMIRT reported its 4Q14 results which met the street’s expectations.

Gross revenue rose 6.2% YoY to S$36.0m due largely to positive rental reversions. DPU jumped 26.8% to 0.71 S cents. However, gross revenue and DPU for FY14 dipped 10.2% and 15.1% to S$137.0m and 2.76 S cents, respectively, underpinned by the weaker IDR versus the SGD and a lower NPI margin of 92.0% (FY13: 93.9%).

Management has currently hedged ~67% of its estimated net cash flows. It plans to increase this hedge ratio to at least 90%.