Lippo Malls Indonesia Retail Trust to extend mall closure to Medan

LIPPO Malls Indonesia Retail Trust D5IU (LMIRT) will temporarily close its malls in Medan, Indonesia after emergency public activity restrictions to curb the spread of Covid-19 were extended to the region, its manager said on Monday in a bourse filing.

The malls will be closed from July 12 to 20, with only essential services such as supermarkets, pharmacies, banks and clinics allowed to remain open with shorter operating hours and capacity limits. Restaurants and cafes will be able to offer only delivery and takeaway.

The trust's manager had previously said it would close its malls and retail spaces in Java and Bali from July 3 to 20 due to the emergency restrictions.

LMIRT's manager said depending on the situation on the spread of Covid-19 in Indonesia, it may consider temporarily closing additional malls or extending the period of the closures.

It also said it is difficult to ascertain the full financial impact of the crisis on the trust's performance as the situation remains uncertain, but added that LMIRT has sufficient financial resources to meet near-term financial obligations and when they fall due. It has about S$155 million in cash on its balance sheet as at the end of June, versus S$67.5 million of bank debt due November 2022.

The manager said it will extend waivers to tenants that are not permitted to operate during this period, and consider additional rental support and utilities and service charge discounts.

Units of LMIRT closed unchanged at 6.4 Singapore cents on Monday.


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