Lippo Malls Indonesia Retail Trust property, Palembang Icon. (Photo: Lippo Malls Indonesia Retail Trust)

Lippo Malls Indonesia Retail Trust (LMIRT) is shutting its properties within the Greater Jakarta region, Bandung and Bali from 27 March to 09 April 2020.

These properties will only operate essential services such as supermarkets and pharmacies amid the worsening COVID-19 situation, said the REIT.

These outlets will open with shorter operating hours from 11.00 am to 6.00 pm.

The REIT will however continue to support tenants who choose to continue operations to serve on-line delivery orders.

The REIT’s remaining malls will remain open with shorter operating hours from 11.00 am to 6.00 pm.

“As tenants would be exempted from the payment of rental fees during the closing period of the malls, the distributable income of the trust would naturally be negatively affected in the second quarter of 2020”, said LMIRT.

“However, as the situation remains uncertain, it is currently difficult for the manager to ascertain the full financial impact of the crisis on the financial performance of the trust”.

“Nevertheless, the trust remains in compliance of its debt financial covenants and has adequate financial reserves to fulfil its obligations in the foreseeable future”, it added.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.