John Riady, CEO of Indonesian property and healthcare conglomerate PT Lippo Karawaci Tbk, or LPKR, said on an earnings call today, April 27, that the company continues to support Lippo Malls Retail Investment Trust, or LMIRT, “as much as we can”.
Riady added that LMIRT’s current situation is a work in progress, and he hopes to be able to provide more detail when its debt is around 12 months out from its maturity, so some time close to June or July this year.
LMIRT is facing a near term maturity wall, as reported. The company has SGD 135 million ($101.6 million) loans maturing in November 2023, and SGD 82.5 million maturing in January 2024. In addition, it has $250 million 7.25% guaranteed senior notes due June 2024 and $200 million 7.5% guaranteed senior notes due 2026.
By the end of 2023, Reorg has
estimated that LMIRT could experience a funding gap of up to SGD 90 million depending on its minimum cash requirement and with SGD 405 million of maturities in the first half of 2024, a multi-pronged solution involving secured financing, exchange offer and medium term asset sales is likely required.
In regard to reports of LPKR’s intention to buy an around 26% stake held by private equity firm CVC Capital in healthcare company PT Siloam International Hospitals Tbk, Riady declined to comment.
The current LPKR Siloam stake is 58.07% and the company continues to buy in small amounts when the price is right, and will continue to disclose as regulations require.
Riady emphasized,
as he has on previous earnings calls, that he sees “a lot of value in Siloam” and it continues to be an important and core part of the group’s business.
Siloam achieved its highest-ever first-quarter financial results, according to LPKR’s financials for the quarter
published today.
Siloam achieved a 19% year-on-year increase in revenue to IDR 2.6 trillion, a gross profit increase of 29% year on year to IDR 1.1 trillion and EBITDA increase of 47% year on year to IDR 673 billion. This was driven by the recovery of base case revenue, increased volume of complex surgeries, improvements of payor mix, and enhanced adoption of digital patient channels, according to the results filings.
–Stephen Aldred, Tito Summa