Circular - Lippo Malls Indonesia Retail Trust - Investor Relations

The reduction in the absolute amount of total distributable income in the pro formafinancial statements is mainly due to the fact that:(A)(B)(C)(D)(E)Palembang Square is undergoing an asset enhancement initiative which isexpected to be completed in early 2013;KJI had undergone an asset enhancement initiative with a substantial part of theworks only having been completed in 3Q2012;the two anchor tenants of Pejaten Village, namely Matahari Department Store andHypermart, have had an upward rental adjustment in 2012 that has not beenincluded in the calculations of the pro forma financial effects for Pejaten Village forFY2011;two key tenants of Binjai Supermall, namely Matahari Department Store andHypermart, will be leasing 12,630.16 sq m of space in Binjai Supermall but suchlease will only be entered into after the Binjai Supermall Acquisition has takenplace, and such lease has not been taken into account in the determination of thepro forma financial effects for Binjai Supermall for FY2011; andthe Binjai Supermall Purchase Consideration is payable based on the expansionand renovation program (which is expected to increase the net lettable area bymore than 25% by March 2013).5.1. Financial year ended 31 December 2011Pro Forma DPU and distribution yieldThe pro forma financial effects of (i) the Recent Acquisitions, (ii) the Recent Acquisitionsand the Pejaten Village Acquisition, (iii) the Recent Acquisitions and the BinjaiSupermall Acquisition, and (iv) the Recent Acquisitions and the Proposed Acquisitionson the DPU and distribution yield for LMIR Trust for FY2011, as if LMIR Trust hadpurchased the relevant properties on 1 January 2011, and held and operated therelevant properties through to 31 December 2011, respectively, are as follows:December 2011Portfolio withDecember 2011 RecentPortfolio (1) AcquisitionsDecember 2011Portfolio withRecentAcquisitionsand PejatenVillageDecember 2011Portfolio withRecentAcquisitionsand BinjaiSupermallDecember 2011Portfolio withRecentAcquisitionsand ProposedAcquisitionsDistributableincome (S$‘000) (2) . 47,446 46,508 45,186 45,151 43,829Units in issue andto be (issued). . . . 2,174,682,008 2,175,947,722 (3) 2,176,619,151 (3) 2,176,076,294 (3) 2,176,747,722 (3)DPU (cents) (4) . . . 2.18 2.14 2.08 2.07 2.01Distribution yield (5) . 6.23% 6.11% 5.93% 5.93% 5.75%Notes:(1) Based on the FY2011 Audited Consolidated Financial Statements.(2) Distributable income includes Unitholders’ distribution from operations and return of capital.(3) The number of Units is arrived at after taking into account the new Units to be issued in payment of theperformance fee as a result of additional Net Property Income after the relevant acquisitions.(4) The DPU is derived at by taking into account the distributable income for FY2011, divided by the totalnumber of Units in issue and to be issued as at 31 December 2011.(5) The distribution yield is derived at by taking into account the DPU for FY2011, divided by the closingprice as at 31 December 2011 of S$0.35.29