Aug 12, 2023 – Lippo Mall Indonesia Retail Trust (LMIRT) posted second-quarter net property income of S$32 million, down 6.6% from a year ago. In rupiah terms, net property income was down just 1.6%.
“Despite operational challenges for some of our malls due to intense competition from newer malls in those areas and protracted recovery for tenants in hypermarket and supermarket sectors, our portfolio occupancy remained stable at 81.4%, up from 80.4% in 1Q 2023 and shopper traffic has recovered to 69.4% of pre-Covid levels. With our continuous efforts in bringing in new tenants and renewing expiring leases, we secured 30,450 square metres of new leases and renewed 70.6% of leases that expired in 1H 2023 with a positive rental reversion of 1.2% to-date,” said its CEO, James Liew, said in a statement
The trust’s manager said in the statement that negotiations with existing bankers to address its debt obligations remained challenging due to current financial market conditions and the downgrading of the trust’s credit ratings in the fourth quarter of last year. To conserve capital and cash resources, it has ceased distribution to the holders of its S$140.0 million perpetual securities since March 2023, and to holders of its S$120.0 million perpetual securities in May 2023, triggering the restriction in distribution to unitholders.