LMIR Trust obtains waiver of ratio of net property income to interest expense on its debts

LIPPO Malls Indonesia Retail Trust's (LMIR Trust) D5IU manager announced on Wednesday (Dec 29) in a bourse filing that it has obtained waivers relating to its ratio of consolidated net property income to consolidated interest expense under 3 of its loan facilities.

The loan facilities are a S$135 million facility agreement dated Nov 9, 2018, a S$120 million facility agreement dated Jan 6, 2021 and a S$30 million committed revolving loan facility agreement dated Aug 18, 2021.

For these facility agreements, LMIR Trust was granted a waiver of the requirement to maintain the ratio of consolidated net property income to consolidated interest expense of not less than 2.5 to 1.

Under the waiver, the trust need only maintain an interest coverage ratio of 1.5 times.

As of Dec 29, the trust said that it continues to comply with the terms of its debt financial covenants and has enough financial reserves to meet its obligations.

The waiver comes as the trust saw the closure of most retail stores in its properties in July 2021, after Indonesia imposed emergency public activity restrictions to curb the spread of Covid-19.

While its properties currently operate at between 70 and 100 per cent mall capacity, it noted that the government may reinstate emergency public activity restrictions to prevent another resurgence of Covid-19 infection cases triggered by the Omicron variant.

Units of the trust closed flat at S$0.055 on Wednesday.