Lippo Mall Indonesia Retail Trust sees aggregate leverage increase to 44.3%

The increased aggregate leverage was mainly due to a decline in the indicative portfolio valuations of its investment properties.

Lippo Malls Indonesia Retail Trust’s (LMIRT) D5IU aggregate leverage ratio has inched upwards to 44.3% as at Dec 31, 2023, compared to 43.0% as at the end of September last year.

On Jan 4, the manager of LMIRT said in a bourse filing that the increase was mainly due to a decline of approximately 7.7% in the indicative portfolio valuations of its investment properties as at the end of 2023 compared to the carrying value at the end of 9MFY2023.

The increased aggregate leverage came about despite a $19.5 million reduction in LMIRT’s debt obligations from the completion of tender offers for LMIRT Capital, a wholly-owned subsidiary of LMIRT, for its senior unsecured notes due in 2024 and 2026 on Dec 29, 2023.

The manager notes that LMIRT remains within the applicable aggregate leverage limit of 45% and remains in compliance with the financial covenants in its existing loans.

Fitch Ratings Singapore had earlier downgraded LMIRT’s long-term issuer default ratings (IDR) to ‘C’ from ‘CCC-’ on Jan 2.

Units in LMIRT closed 0.2 cents lower or 12.5% down at 1.4 cents on Jan 4.

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