Lippo Karawaci reports 1H22 Marketing Sales of Rp 2.48tn, on track for FY22 Target of Rp 5.2tn.
Jakarta - PT Lippo Karawaci Tbk (“LPKR” or “Company”), Indonesia’s leading real estate and healthcare platform based on total revenue, reported marketing sales of Rp 1.28tn in 2Q22 and Rp 2.48tn in 1H22, contributing to 47.8% of FY22 target of Rp 5.2tn. LPKR achieved a 7% YoY increase in marketing sales in 1H22 as compared to 1H21 (Rp 2.48tn vs Rp 2.33tn).
2Q22 sales were driven by successful launches of landed residential projects for first-home owners – Cendana Icon, Cendana Marq, Cendana Nest, Cendana Clov’r and Cendana Gard’n in Karawaci, as well as Uptown Estate in Cikarang. These launches saw a take-up rate of over 95%. The first- home owners segment contributed 64.3% to total marketing sales in 1H22. The demand for completed legacy projects (pre-2019 launches) also picked up in 1H22, with total sales of Rp 132bn.
Management reaffirms FY22 guidance of Rp 5.2tn in marketing sales. Marketing sales for the second half of FY22 will be driven by 1) additional launches of landed residential products for first- home owners; 2) additional launches of luxury residential products and shophouse units; 3) new launches of mid-rise apartments to widen market penetration; and 4) sustained demand for high- rise inventory units.
Exhibit 1: Marketing Sales (Rp Bn)
Exhibit 2: Marketing Sales Breakdown (RpBn)
In 2Q22, LPKR holdco sales were driven by several new launches in Cendana series at Lippo Village Karawaci totalling Rp 465bn, large land plot sales of Rp 304bn at 3 locations, and sales of existing high-rise inventory of Rp 49.5bn. Our wholly-owned burial grounds, San Diego Hills, reported sales of Rp 126bn in 1H22, or a 22% YoY decline compared to 1H21, in line with subsiding Covid-19 cases nationwide.
In Lippo Cikarang (JCI: LPCK.JK, 84% ownership), LPCK sold Uptown clusters at Waterfront Estates, Tanamera shophouses, and industrial land worth Rp 116 bn. LPCK’s 1H22 marketing sales of Rp 620bn were in line with last year’s performance.
Exhibit 3: Marketing Sales By Location
By location, Lippo Village was the largest contributor to sales in 1H22 due to successful launches of landed residential clusters. Lippo Cikarang followed with strong demand for landed residential clusters and industrial land.
Exhibit 4: Marketing Sales By Project
Exhibit 5: Payment Profile by Percentage
In 1H22, 71% of total marketing sales were financed through mortgages as the biggest components of sales were landed residential clusters in Lippo Village and Lippo Cikarang. Excluding non- residential sales, mortgage utilization for landed housing sales alone reached over 76%.
Exhibit 6: Typical Units of Cendana & Brava cluster