SG brief: Lippo Malls Indonesia Retail Trust

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Lippo Malls Indonesia Retail Trust said the decline in its portfolio occupancy rate to 80.9 percent in 2021, from 81.1 percent in 2020, and above 90 percent pre-Covid, was due to some tenants, particularly in the entertainment, leisure and department store sectors were adversely affected by mall closure periods related to stemming the spread of the Covid-19 virus.

“We do not view the recent decline in occupancy rate as structural in nature given the favourable long-term outlook of Indonesia and growth in its middle class population. We believe that the occupancy rate in our malls should improve as pandemic related restrictions are lifted, and retailers are more confident to expand their businesses,” LMIR Trust said in response to questions from shareholders at its annual general meeting (AGM) in late April and filed to SGX on Friday.

“We are actively working with our mall operator to seek out prospective tenants to fill the vacated areas during the pandemic as well as engaging different partners to bring in new and replacement tenants to improve the occupancy rate,” LMIR Trust said.