Siloam Hospitals Kupang & Lippo Plaza Kupang (Photo: First REIIT)

First REIT has temporarily shut down two of its properties as the COVID-19 pandemic continues to barrel across Indonesia.

These are namely the property comprising Siloam Hospitals Kupang & Lippo Plaza Kupang, and the property comprising Siloam Hospitals Buton & Lippo Plaza Buton.

These properties are shut from 1 April 2020 to 14 April 2020.

“As the coronavirus disease continues to spread across the provinces in Indonesia, master tenants and operators have generally taken a prudent and cautious approach to temporarily close retail spaces except for certain essential services, in order to safeguard the health and safety of shoppers, tenants, employees and the general public”, said First REIT.

“Certain essential services such as supermarkets, pharmacies and clinics remain open with shorter operating hours from 11.00 am to 6.00 pm”, the REIT added.

“The temporary closures affect only retail assets which comprise a small proportion of assets within First REIT’s portfolio, which is predominantly healthcare and healthcare related”, the REIT clarified.

“As the situation remains uncertain, it is currently difficult for the manager to ascertain the full financial impact of the outbreak on the financial performance of First REIT’ it added.

“Nevertheless, First REIT remains in compliance with its debt financial covenants and has adequate financial reserves to fulfil its obligations in the foreseeable future”, it emphasised.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.