Lippo Village, Tangerang, Indonesia
Wednesday, October 24 2018
PT Lippo Karawaci Tbk (“LPKR”) announced its audited 1H2018 Financial results. Revenues up by 13% yoy to Rp 5,6 trillion. Meanwhile net profits rose by 135% yoy to Rp 1.1 trillion for the period ended 30 June 2018, which was mainly due to gain from deconsolidation of PT Mahkota Sentosa Utama, an indirect subsidiary of LPKR, with net gain amounting to Rp 1.3 trillion.
Healthcare business division was Rp 2.8 trillion, driven primarily from revenues of 8 mature hospitals that reported moderated increases of 7.7% yoy to Rp 1.4 trillion from Rp 1.3 trillion. The 11 developing hospitals’ revenues were up by 8.3% yoy to Rp 909 billion from Rp 839 billion. The 10 new hospitals opened in 2017 and 2018 have booked Rp 134 billion in revenues, up 481.5% yoy from Rp 23 billion. Furthermore, OPD visits increased by 13% yoy while IPD admissions increased by 15% yoy.
Revenues for the Residential & Urban Development business division increased by 17% yoy to Rp 1.8 trillion from Rp 1.6 trillion, mainly driven by increased of Urban Development revenues which increased by 49% yoy to Rp 1.4 trillion.
Revenues for the Commercial division, which consists of Retail Malls & Hotels, slightly increased by 3% yoy to Rp 376 billion as Retail Malls revenues were down by 8% yoy to Rp 177 billion. Meanwhile, Hotels revenues increased by 16% yoy to Rp 199 billion.
Revenues for the Asset Management business division increased by 9% yoy to Rp 522 billion mostly due to enlarged assets under management.
LPKR's recurring income grew by 12% yoy to Rp 3.7 trillion contributing to 67% of the company's total revenues for the 1H2018.
LPKR President Director, Ketut Budi Wijaya, said : "The central bank, Bank Indonesia has increased its benchmark rate several times totaling to +150 bps throughout 2018 to 5.75%. The higher interest rate environment coupled with the uncertainty overhang facing the global economy due to US-China trade war, and the continuing downward pressure on Rupiah will adversely affect people’s buying sentiment on property in 2018. The company’s 1H18 performance reflects our focus on operational efficiency in the midst of sluggish property market. We remain optimistic about Indonesia's long-term property market fundamentals and remain focused on company’s sustainable value creation in the years ahead.”
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 62.7% respectively, LPKR develops and currently operates urban developments at Lippo Cikarang in Bekasi and at Tanjung Bunga in Makassar. In addition, LPKR owns 51.05% of PT Siloam International Hospitals Tbk (“SILO”), the largest private hospitals network in Indonesia, which currently manages and operates 34 state-of-the-art-hospitals in 25 cities throughout the country, comprising 12 hospitals in Greater Jakarta and 22 hospitals distributed across Java, Sumatra, Kalimantan, Sulawesi, Bali and Nusa Tenggara supported by more than 2,700 specialists and general practitioners as well as over 10,000 nurses and support staff.
LPKR has established 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 7.9 trillion or USD 532 million as at September 28, 2018
For more information please contact:
Investor Relations:
William Wijaya Utama
Senior Manager
william.utama@lippokarawaci.co.id
Mobile: +6281813868
Corporate Communications:
Danang Kemayan Jati
Vice President, Head of Corporate Communication
DanangJ@lippokarawaci.co.id
Mobile: +628557801299
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 3 otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.
Forward-Looking Statements
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.
