Press Release
Moody's Upgrades LPKR’s Rating To ‘Positive’ Outlook On The Back Of Cash Flow Improvements, Increased Liquidity And Strong Marketing Sales
24 November 2021

• A Moody’s ‘Positive’ outlook rating is an opinion regarding the likely direction of a rating over the next 12-18 months (medium term), implying that there is the potential for the rating to be upgraded to B2 from B3.

• LPKR’s 9M21 Revenue increased by 44% YoY to Rp10.95tn, supporting EBITDA growth of 84% as the Property Development business and Siloam continue to excel; consistently higher marketing sales (+71% YoY) support future earnings.

• Marketing Sales reached Rp4.4tn through 10M21 and projected to exceed Rp4.7tn in FY21 and Rp5.2tn in FY22.

• An Upgrade is possible if LPKR’s operating cash flow at the holding company level is positive and does not rely on one-off asset sales along with debt ratio improvements.

Jakarta - PT Lippo Karawaci Tbk ("LPKR" or "Company"), Indonesia’s leading real estate and healthcare platform based on total assets and revenue was advised that Moody’s is placing a ‘Positive’ outlook on the Company from ‘Stable’ after evaluating the Company’s recent performance, financial position and liquidity.   

In 9M21, LPKR’s reported revenues increased by 44% to Rp10.9 trillion and EBITDA increased by 84% to Rp2.9 trillion. Adjusting these figures due to the impact from the consolidation of LMIRT in 1Q21, core revenues increased by 28.6% to Rp9.8 trillion and EBITDA increased by 43.9% to Rp2.3 trillion.

Despite Covid-19, real estate development revenue increased by 26% to Rp3.0 trillion from Rp2.4 trillion. Furthermore, the property business continues to show signs of resilience as marketing sales surpass corporate targets. In 3Q21 alone, marketing sales reached Rp1.6 trillion and increased total 9M21 marketing sales to Rp3.9tr (+71% YoY) the equivalent of 93% of LPKR’s upwardly revised Rp4.2 trillion FY21 target.

Moody’s noted that an upgrade is possible if LPKR’s operating cash flow at the holding company level is positive and does not rely on one-off asset sales along with debt ratio improvements. The key metric that the Company will look to improve is its Debt to EBITDA which could be obtained through paying down debt or continuing to report EBITDA expansion. Given the anticipated improvements in FY22 at the malls and hotels, there is expectation that this metric will continue to improve.

The rating remains B3 and the change in outlook to Positive is a testament to the Company’s strong progress on Holdco operating cash flows through strong growth in marketing sales, completion of legacy projects, subsidiary dividends and productive renegotiation of rental subsidies. Furthermore, Moody’s noted that the Company’s cash position is sufficient over the next 18 months to cover cash outflows without relying on one off asset sales.

Moody’s further noted that they have increased their FY21 marketing sales target for LPKR by 34% to Rp4.7tn (from Rp3.5tn) as the Company’s marketing sales through 10M21 reached Rp4.4tn. Looking forward, Moody’s instituted a FY22 marketing sales target of Rp5.2tn reflecting confidence in the sustainability of LPKR’s affordable landed residential business.
Holdco liquidity continues to improve as Moody’s highlighted, noting that liquidity at the holding company level will be adequate for the next 12-18 months. At 9M21, Lippo Karawaci reported a Holdco cash position of Rp2.3tn.

About Lippo Karawaci (“LPKR”) (

Listed on the Indonesia Stock Exchange, Lippo Karawaci (“LPKR”) is Indonesia’s leading real estate and healthcare platform with total assets of US$4.4 billion at 30 September 2021. Our core business comprises residential developments and healthcare. We are also actively involved in integrated developments, lifestyle malls, hospitality, township development and management, as well as asset management services.

Currently, the Company has a presence in 40 cities, and is a leading Indonesian property developer with 1,362 ha of landbank ready for development. Through our two publicly listed subsidiaries, PT Lippo Cikarang Tbk, and PT Gowa Makassar Tourism Development Tbk, of which LPKR owns 84.0% and 62.7% respectively, LPKR develops and operates urban developments at Lippo Cikarang in Bekasi and at Tanjung Bunga in Makassar. Additionally, LPKR owns 55.4% of PT Siloam International Hospitals Tbk, Indonesia’s leading private hospitals network, with 40 hospitals across 26 cities nationwide.

LPKR holds a 58.4% ownership stake in Lippo Malls Indonesia Retail Trust, a listed REIT in Singapore with US$1.3bn of assets under management at 30 September 2021.

For more information, please contact:

Investor Relations:
Bret Ginesky
Head of Investor Relations
[email protected]
Office: +622125669078

Corporate Communications:
Nuke Prabandari
Head of Corporate Communication
[email protected]
Office: +622125569000