“Notwithstanding the above, should the exchange rates as at Jan 31 of $1 to 11,413 rupiah and US$1 to $1.32 be used in place of the exchange rates as at Dec 31, 2022, the estimated aggregate leverage ratio of LMIRT as at Dec 31, 2022 based on updated approximate asset valuations and other information currently available to the manager would be 42.9%,” says the REIT manager.
“The decrease in the aggregate leverage ratio is mainly due to the appreciation of the SGD against the USD from US$1 to $1.35 to US$1 to $1.32 during the month of January 2023, which reduced the value of the USD-denominated borrowings of LMIRT when translated into SGD,” it adds.
This comes after the REIT’s announcement on Jan 3 that it expects its aggregate leverage ratio to come within the range of 44.25% and 44.75%.
The latest announcement is based on updated approximate asset valuations and other information currently available to the manager.
See also: SGX gives approval-in-principle to FHT to delist
The manager adds that it is exploring options and measures to “maintain a sustainable capital structure” and reduce the REIT’s aggregate leverage. This includes the “sale of non-strategic non-core properties at acceptable prices and use of excess internal cash resources”. The situation may affect distributions to the REIT’s unitholders and holders of perpetual securities, reveals the manager.
Units in LMIRT closed 0.1 cent higher or 3.13% up at 3.3 cents on Feb 1.
