In FY2018, Lippo Karawaci and its units accounted for $79.61 million, or 68.5%, of First REIT’s $116.2 million rental income. For LMIRT, in FY2018, master leases from Lippo Karawaci and its affiliates represented 13.9% of total revenue, or $32 million. The underlying performance of LMIRT’s master lease space was just $7.4 million, or 23.2% of the master lease revenue.
SINGAPORE (Apr 15): Although stresses at Lippo Karawaci have been alleviated, they remain in other parts of the group, which could put pressure on its Singapore-listed real estate investment trusts (REITs).
On March 12, Lippo Karawaci announced a US$1,010 million ($1,367 million) funding programme consisting of a US$730 million rights issue underwritten by the Riady family, and US$280 million from asset divestment. The rights issue brings in new investors, such as George Raymond Zage III and Chow Tai Fook Jewellery Group, who together are investing US$70 million. More recently, a Singapore developer has agreed to invest in Lippo Karawaci as well. The funds will be used for partial repayment of debt obligations and rental obligations for its REITs. Both Lippo Malls Indonesia Retail Trust and First REIT have rental support in the form of master leases from Lippo Karawaci.
