News about First REIT —
While it sounds counter-intuitive, the Covid-19 pandemic has been hurting the health care sector as many non-pandemic related procedures and treatments have been delayed or outright cancelled. The Lippo Karawaci group (LPKR) has announced its desire to renegociate its leases with First REIT over its Siloam hospitals:
Under the current lease structure, the healthcare real estate investment trust (Reit) is guaranteed a certain rent level, which means any decline in Siloam's revenue increases the "significant" rental support that First Reit will receive, LPKR said.
On Monday afternoon, the Reit manager clarified that it has not been approached by LPKR regarding these matters.