LMIR Trust: Difficult to estimate full financial impact of Indonesia mall closures

Lippo Mall Puri, part of the St Moritz Jakarta Integrated Development located in West Jakarta. Lippo Malls Indonesia Retail Trust, or LMIR Trust, agreed to aquire the mall in March 2019. Credit: LMIR TrustLippo Mall Puri, part of the St Moritz Jakarta Integrated Development located in West Jakarta. Lippo Malls Indonesia Retail Trust, or LMIR Trust, agreed to aquire the mall in March 2019. Credit: LMIR Trust

Lippo Malls Indonesia Retail Trust (LMIR Trust) said Wednesday it was currently difficult to ascertain the full financial impact of the closure of its malls in Indonesia due to uncertainty around the Covid-19 pandemic restrictions.

The temporary closure of the Java, Bali and Medan malls would be extended until 25 July, noting the reopening date could be pushed back further, the trust said. LMIR Trust had previously said its malls would be closed until 20 July.

“During this closure period, the trust will be extending rental waivers to tenants who are not permitted to operate during this period. The extension of additional rental support and utilities and service charge discounts are being considered,” LMIR Trust said in a filing to SGX.

“Nevertheless, the Trust has sufficient financial resources to meet its near-term financial obligations when they fall due,” it added.

Fitch Ratings earlier this month downgraded its rating on Lippo Malls Indonesia Retail Trust (LMIR Trust) to B-plus from BB-minus, with a negative outlook as pandemic-related lockdowns spread in Indonesia.

On Tuesday, Indonesian President Joko Widodo, known as Jokowi, said the restrictions would be gradually be eased from 26 July, if the decline in case counts continues.

LMIR Trust said essential services in its malls, such as supermarkets, pharmacies, banks and clinics would remain operational with shorter hours and capacity limits, while restaurants and cafes wouldn’t be allowed to offer dine-in services.