Again, depreciating IDR affect results. However, ignoring the currency weakness, there are still pockets of concerns to highlight:
1) Pluit Village mall is the biggest mall in LMIR portfolio. It has a drop in occupancy from 87.9% to 81.6%.
2) In IDR, while Gross rent and net rent is stable, it is the third consecutive quarters of YOY fall. This is despite occupancy rate remaining stable and positive rental revision. The cause should then be due to fall in GTO rent. Consumer spending in Lippomalls has not seen any revival.
If oil subsidy get a big cut, it will be good for Indonesia economy, current account and FDI, and perhaps also currency, but it will have a negative impact on consumer spending.
Although there is no info on GTO tenants, my gut feel and guess will be its Sponsor affiliate/ subsidary, Matahari department store, which takes up to 11% of the gross rental income
3) Dilution of shares due to the pending equity raising. LMIR shares has been trading below 40 cents now, more shares will have to be issued than when they first assume 40.5 cents issue price. If issue price is 37 cents, there will 10% more dilution.
The CEO cannot do any share buyback to boast the price before equity raising. The company results while not too bad has no catalyst for price to increase.
Generally, an unexciting results with nothing much to look forward to except the distribution.