Lippo Village, Tangerang, Indonesia
Tuesday, 17 April 2018

PT Lippo Karawaci Tbk (“LPKR”) today announced its audited consolidated full year 2017 financial results. Total revenue amounting to Rp11 trillion remained flat compared to the previous years, in the midst of Indonesia's macro economy challenges including the weakening of consumer confidence, which has created wait and see attitude for prospective property buyers. 

Ketut Budi Wijaya, LPKR President Director commented:  "It's been a challenging year for the property sector. Despite the continued sluggish property market, LPKR has been successfully recorded the strong marketing sales numbers of Rp 8.2 trillion, of which Rp 7.5 trillion was generated from Meikarta. With the completion of assets sold to the REITS, contributing Rp 1.1 trillion, total property sales in 2017 was Rp 9.3 trillion. While property developers in Indonesia were considerably affected by the slowdown in 2017, LPKR was slightly better off than its peers, this being due to the company’s expanding recurring revenue, which insulates it against volatility in the property market, which is proving once again the importance of having a balanced revenue stream especially in a soft property market.  LPKR’s recurring revenue grew by 13% yoy, mainly underpinned by 13% yoy growth in our healthcare division. We expect falling mortgage rates, higher commodity prices and infrastructure development to be a positive catalysts for the property market recovery in 2018.”

Total Revenue for 2017 amounted to Rp 11 trillion, relatively flat yoy. Similarly, Gross Profit amounted to Rp 4.7 trillion, decreased by 4% yoy, while Net Profit amounted to Rp 614 billion, down by 30% yoy

Development revenue shrank by 18% yoy to Rp 3.5 trillion, contributing 31% to total revenue. Whilst recurring revenue grew by 13% yoy to Rp 7.6 trillion contributing 69% to total revenue 

Revenue from the Urban Development division decreased by 22% yoy to Rp 2.3 trillion, underpinned  by the soft property market in 2017.

Revenue from the Large Scale Integrated division was decreased by 8% yoy to Rp 1.2 trillion in FY 2017

Revenue from the Healthcare division grew by 13% yoy to Rp 5.8 trillion. The revenue of 6 mature hospitals were up by 7.9% yoy to Rp 2.6 trillion from Rp 2.4 trillion, while revenue from 10 developing hospitals’ were up by 10.6% yoy to Rp 2.3 trillion from Rp 2.1 trillion. The 8 new hospitals that where opened in 2017 recorded revenue of Rp 131.7 billion. Out-patient (“OPD”) visits grew by 16.7% yoy, while In-patient (“IPD”) admissions grew by 7.7% yoy.  Net Profit for the Healthcare division amounted to Rp 93.6 billion, up by 9% yoy.

At the end of 2017, Siloam manages 31 hospitals, 8 of which started operation in the first 9 months of the year. During the year, Siloam Hospitals Denpasar successfully obtained Joint Commission International (“JCI”) accreditation following the footstep of Siloam Hospitals Lippo Village and Siloam Hospitals Kebon Jeruk. Siloam Hospitals Lippo Village was also re-accredited by JCI for the third time. Siloam continues to support BPJS Kesehatan by registering additional 5 hospitals to serve BPJS Kesehatan patients in Asri, Cirebon, Hosana Medica, Palembang and Sentosa, bringing the total of registered hospitals to 21.

LPKR's Commercial division revenues was slightly up by 5% yoy to Rp 770 billion. This is mainly due to increases of Malls revenue by 12% yoy to Rp 397 billion, supported by increased contribution from Lippo Mall Puri, Buton and Jambi. Meanwhile, hotels revenue remained flat at Rp 373 billion.

The Asset Management business consisting of town management and portfolio & property management, grew healthily by 15% yoy to Rp 983 billion in 2017 mostly due to enlarged asset under management in REITS portfolio.

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 32 state-of-the-art-hospitals in 23 cities throughout the country, comprising 12 hospitals in Greater Jakarta and 20 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 9,800 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 11 trillion or USD 814 million as at April 13, 2018.

For more information please contact:

Investor Relations:
William Wijaya Utama
Senior Manager
[email protected]
Mobile: +62818138688

Corporate Communications:
Danang Kemayan Jati
Vice President, Head of Corporate Communication
[email protected]
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 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.