The manager of Lippo Malls Indonesia Retail Trust (LMIR Trust) has reversed into earnings of $3.64 million for the 2QFY2025 ended June 30.

For the 1HFY2025, earnings came in at $23.02 million, also a reversal from the loss reported the same period a year ago.

The trusts’ net property income (NPI) for 2QFY2025 came in 1% y-o-y lower at $29.1 million, and down 1.7% y-o-y for the 1HFY2025 to $58.2 million. This is due to foreign exchange movements and higher property operating expenses associated with improved occupancy.

In Indonesian rupiah terms, NPI grew 5.5% y-o-y in the quarter and 3.2% y-o-y for the first half of the year, to IDR369.1 million and IDR721.2 million respectively.

Gross revenue for the 2QFY2025 grew 4.5% y-o-y to $50.3 million, and 2.9% y-o-y to $100.2 million for the 1HFY2025. In Indonesian rupiah terms, the growth for the 2QFY2025 was higher by 11.3% y-o-y to IDR638.7 million, and by 8.1% y-o-y to IDR1.24 billion for 1HFY2025.

The trust says that gross revenue increase was achieved amid continued operational recovery, despite a 4.8% y-o-y depreciation of the Indonesian rupiah against the Singapore dollar.

On rental revenue, the trust saw a marginal growth of 0.2% y-o-y for the 2QFY2025 to $27.088 million, but a higher growth of 6.8% y-o-y to IDR344.1 million in Indonesian rupiah terms.

Topline growth was mainly due to steady rental revenue attributable to higher occupancy during the period under review; increase in carpark income due to change in carpark management arrangement; and 11.6% y-o-y increase in other rental income.

As at June 30, LMIR Trusts’ gearing decreased to 43.86% from 44.20% in the quarter before, with interest coverage ratio at 1.53 times. Total debt came in at $679.4 million as at end June.

The total amount in investment properties as at June 30 stood at $1.476 billion, and cash and cash equivalents at $28.3 million.

As at end June, the trust says that approximately 73.9% of expiring leases have been renewed, and weighted average lease of expiry by net lettable area stood at 2.8 years.

The trust has ongoing asset enhancement initiatives (AEIs) at six properties — Sun Plaza, Malang Town Square Units, Lippo Plaza Ekalokasari Bogot, Plaza Medan Fair, Istana Plaza and Bandung Indah Plaza. It has scheduled AEIs at Palembang Square, Lippo Mall Nusantara, Cibubur Junction and Gajah Mada Plaza scheduled for 2025 to 2026.

The trust is exploring options for prudent and sustainable capital structure, including redemption of the remaining US$22.6 million 2026 notes due Feb 2026 among others.

Units in LMIR Trust closed flat at 1.4 cents on July 28.