In my last post, I projected distribution to be 19.2 mio assuming no fall or raise in operating numbers or currency strength/ weaknesses.
The quarter distribution turned out to be 21 mio. While it is not eye popping as compared to a year ago, it did exceed expectations. Comparing it with a year ago is quite meaningless as the Kemang village effect will be unknown,
Looking at the currency exchange of SG/IDR
I am not crazy to do a point to point calculation, but "agar agar' looking at Oct-Dec quarter and Jan- March quarter, I do not see a significant strengthening or weakening. Going forward, however, there is obvious trend of IDR weaking throughout the Month of April. I guess this is one of the things Mr Market is unhappy about. Uncertainty.
But it would have mean, either Kemang as the biggest mall is contributing better or the rest of the malls are holding up well, operations wise, LMIR report card for this quarter is a pass.
There is one ironical and funny statement in the presentation, slide 3:
"Weighted Average Maturity of debt facilities was 1.86 years , with no refinancing required until July 2015 "
Hello, it is 2 months away, so how would you finance this? With new debt or fund raising? Uncertainty again. Mr Market don't like.
200 mio is not a small sum to refinance, it is 125% of annualized NPI of this "good" quarter. and its debt profile is rather concentrated with refinancing every year till 2018.
LMIR execution under Alvin is a good break from the past.
Let's hope he is able to buy another good buy and do some good management of its malls. Maybe sell some weaker malls and borrow to buy yield acretive ones.
Mr Market will like that if he can pull that off.