Lippo Village, Tangerang, Indonesia
Wednesday, 1 March 2017
PT Lippo Karawaci Tbk (“LPKR”) today announced the audited consolidated full year 2016 financial results with total revenue amounting to Rp 10.5 trillion up 18% from 2015 with a 10% growth in Gross Profit to Rp 4.5 trillion and 65% jump in Net Income to Rp 882 billion.
Ketut Budi Wijaya, LPKR President Director stated: "It's been a challenging year. The weak global macroeconomy led by the ‘Brexit” factor and the unexpected results in the US Presidential election, has had a negative ripple effect on Indonesia’s economy. The Indonesia property sector in 2016 continued its slow down from 2015. Fortunately for us our Recurring Revenue underpinned by a 25% growth in Healthcare Revenue helped to mitigate this weakness.”
Development Revenue grew by 11% to Rp 3.8 trillion, contributing 36% to total Revenue. The completion of the Lippo Mall Kuta asset sale to LMIRT in December 2016 boosted the company’s Development Revenue by Rp 762 billion.
Revenue from Urban Development Division slightly decreased by 4% to Rp 2.5 trillion.
Revenue from the Large Scale Integrated Division increased sharply by 62% to Rp 1,25 trillion in FY 2016 mainly due to increased revenue recognition from projects such as Trivium at Lippo Cikarang, Holland Village, Millenium Village and Orange County.
Recurring Revenue played a crucial role in balancing the cyclicality of the weak property business. Recurring Revenue grew by a steady 23% to Rp 6.75 trillion contributing 64% to total Revenue.
Revenue from the Healthcare Division grew by 25% to Rp 5.17 Trillion. Siloam operated 23 hospitals by end of 2016. In-Patient admissions were up by 18% while Out-Patient visits grew by 20%. Net Profit for the year amounted to Rp 86 billion, up by 22%.
LPKR's Commercial Division revenue increased by 21% to Rp 732 billion due mainly to sharp increases in Malls Revenue by 47% to Rp 353 billion, as Lippo Mall Puri revenue increased by 95% to Rp 187 billion in 2016. Meanwhile, Hotels Revenue remained steady at Rp 379 bn.
The Asset Management business consisting of town management and portfolio & property management, grew by 13% to Rp 853 billion in 2016 mostly due to enlarged asset under management, in the REITS portfolio.
Ketut also pointed out the strengthening of the company’s balance sheet through our successful tapping of the global bond markets to refinance our 2019 and 2020 senior notes of USD 250 million and USD 403 million respectively by issuing USD 260 million due 2022 and USD 425 million due 2026 notes with 7% and 6.75% coupon respectively. The private placement of 9% Siloam shares to CVC Capital Partners provided further funding for the hospital expansion.
About Lippo Karawaci (“LPKR”) (www.lippokarawaci.co.id)
LPKR is Indonesia's largest listed property company by total assets and revenues, anchored by a large land bank and solid recurring income base. LPKR's businesses comprise Residential/Townships, Retail Malls, Hospitals, Hotels and Asset Management. LPKR develops residential, light industrial, commercial, retail properties throughout Indonesia. LPKR through its subsidiaries manage and operate hospitals, malls and hotels in major cities in Indonesia and also provides a broad range of infrastructure services to the residents of our developments, and other property management and REIT management services.
Through our two main publicly listed subsidiaries, PT Lippo Cikarang, Tbk (“LPCK”) and PT Gowa Makassar Tourism Development Tbk (“GMTD”), of which LPKR owns 54.4% and 59.8% respectively, LPKR developes and currently operates urban developments at Lippo Cikarang in Bekasi and Tanjung Bunga in Makassar. In addition, LPKR owns 62.1% of PT Siloam International Hospitals Tbk (“SILO”), the largest private hospitals network in Indonesia, which manages and operates 25 state-of-the-art-hospitals in 18 cities throughout the country, comprising 9 hospitals in Greater Jakarta and 16 hospitals distributed across Java, Sumatra, Kalimantan, Sulawesi, Bali and Nusa Tenggara supported by more than 2,300 specialists and general practitioners as well as over 8,800 nurses and support staff.
LPKR has created and sponsored two public listed REIT in Singapore, namely First Real Estate Investment Trust (“First REIT”) and Lippo Malls Indonesia Retail Trust (“LMIR Trust”). LPKR is listed on the Indonesian Stock Exchange with market capitalization of IDR 16.6 trillion or USD1.2 billion as per December 30, 2016.
For more information please contact:
Danang Kemayan Jati
Vice President, Head of Corporate Communications
This press release has been prepared by PT Lippo Karawaci Tbk (“LPKR”) and is circulated for the purpose of general information only. It is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of LPKR. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this release constitute our judgment as of this date and are subject to change without prior notice. LPKR disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this press release and neither LPKR nor any of its affiliated companies and their respective employees and agents accepts liability for any errors, omissions, negligent or otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.
Certain statements in this release are or may be forward- looking statements. These statements typically contain words such as "will", "expects" and "anticipates" and words of similar import. By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, economic, social and political conditions in Indonesia; the state of the property industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia, including environmental regulations and compliance costs; fluctuations in foreign currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for our developments and related capital expenditures and investments; the cost of construction; availability of real estate property; competition from other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits and training, governmental and public policy changes; our ability to be and remain competitive; our financial condition, business strategy as well as the plans and objectives of our management for future operations; generation of future receivables; and environmental compliance and remediation. Should one or more of these uncertainties or risks, among others, materialize, actual results may vary materially from those estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in production, capacity or performance might not be fully realized. Although we believe that the expectations of our management as reflected by such forward-looking statements are reasonable based on information currently available to us, no assurances can be given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements speak only as of the date hereof, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.