Lippo Malls Puri is currently owned by a subsidiary of Lippo Malls Indonesia Retail Trust's sponsor. (Photo: Lippo Malls Indonesia Retail Trust)

Lippo Malls Indonesia Retail Trust (LMIRT) disclosed on 4 January that its aggregate leverage as at 31 December 2023 is approximately 44.3%.

This is higher than the aggregate leverage ratio of 43.0% as at 30 September 2023 as disclosed by the REIT on 9 November 2023.

The rise was recorded despite recent tender offers for the REIT’s senior unsecured notes that reduced its debt obligations by approximately SGD19.5 million.

The REIT’s aggregate leverage ratio increased mainly due to a decline in indicative portfolio valuations of its investment properties as at 31 December 2023 of approximately 7.7%, LMIRT clarified in its disclosure.

LMIRT pointed out that its leverage remains within the applicable limit of 45% as set out in Appendix 6 of the Code on Collective Investment Schemes and remains in compliance with the financial covenants in its existing loans.

This estimation is subject to the finalisation of the valuations of the properties and may differ depending on the actual valuations.

LMIRT was last done on the Singapore Exchange at SGD0.014.

By Shariffa Al-Habshee

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