THE aggregate leverage ratio of Lippo Malls Indonesia Retail Trust : D5IU 0% (LMIRT) is likely to have risen to 44.3 per cent for the fourth quarter ended Dec 31, 2023, from 43 per cent in the previous quarter, its manager said on Thursday (Jan 4).

The increase is primarily due to an around 7.7 per cent decline in the value of LMIRT’s investment properties, said the manager. This comes even as the trust’s debt obligations fell by* around S$19.5 million, thanks to the completion of the tender offers for wholly-owned subsidiary LMIRT Capital’s senior unsecured notes in December. 

Still, the manager emphasised that LMIRT is within the aggregate leverage limit of 45 per cent set out by the Monetary Authority of Singapore and “remains in compliance with the financial covenants in its existing loans”. 

The manager added that the actual value of LMIRT’s aggregate leverage ratio is subject to finalisation of its properties’ valuations and its Q4 financial statement. The manager noted that it would provide an update as and when there are any material developments in accordance with the listing manual.

Units of LMIRT closed at S$0.014 on Thursday, down 12.5 per cent or S$0.002, prior to the announcement.

*Amendment note: An earlier version of the article incorrectly stated that the trust’s debt obligations fell to around S$19.5 million, when it had fallen by S$19.5 million.

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