Why did LMIRT's DPU drop drastically although the NPI is the same? - Seedly
 

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Asked by Anonymous

Asked on 23 Feb 2019

Why did LMIRT's DPU drop drastically although the NPI is the same?

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Sandra Teo
Sandra Teo
Level 7. Grand Master
Answered on 23 Feb 2019

According to LMIRT's earnings report, NPI declined by 10.5% and gross revenue increased 16.4% The REIT attributed the decline in NPI to the weakening of the Indonesian rupiah, the new tax regulations implementd (10% tax on service & utility charges) as well as the increase in total operating expenses. DPU fell by 40.4% to 2.05cents SGD. Although LMIRT has taken over the mall's maintenance and operations instead of outsourcing to a third party vendor in light of the new tax regulations, it was not enough to offset the drop.

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