Distributions for perpetual securities for REITs are non-cumulative, and do not accrue, so investors will lose these distributions. In addition, because perpetual securities are further up the capital structure, a dividend stopper applies. That is, LMIRT won’t be paying distributions per unit or DPU either, till such time as the perpetual securities are redeemed, or the trust resumes distirbutions.
On March 20, Lippo Malls Indonesia Retail Trust’s (LMIRT) manager announced it would not be paying distributions on its $140 million tranche of perpetual securities due on March 27.
Separately on February 24, along with its FY2022 results announcement, LMIRT’s manager announced it intended to cease distributions for the $140.0 million and $120.0 million perpetual securities, and it plans to appoint a financial adviser.
