Jakarta - PT Lippo Karawaci Tbk (“LPKR” or “Company”), Indonesia’s leading real estate and healthcare platform based on total revenue, reported Rp1.21tn in 1Q22 marketing sales, in line with FY22 expected targets and comparable to 1Q21 marketing sales of Rp1.31tn. 11Q22 sales were driven by landed residential clusters targeted at first-home owners, which contributed 71.8% to total marketing sales for the period. Additionally, demand for recently completed legacy projects also picked up in 1Q22, with Holland Village Jakarta and Bintaro Embarcadero both booking about 5 times that of sales in 1Q21.
In 1Q22, LPKR launched two residential projects in Lippo Village, consisting of 252 units of Cendana Cove Verdant and 12 units of Brava @ Himalaya, all of which were sold out within the same day of launch. In Lippo Cikarang (JCI: LPCK.JK, 84% ownership), LPKR launched Tanamera cluster at Waterfront Estates, which consists of 63 shophouse units. Moreover, Uptown, the fourth cluster at Waterfront Estates in Cikarang that was launched in 2021, continues to contribute to quarterly sales.
LPCK has sold nearly 58% of the total 695 units despite no grand launch event, thereby validating market demand towards properties priced at an average of Rp1bn. We continue to see persistently strong demand in the first-home owners housing segment, supported by high mortgage utilization implying high end user demand.
LPKR’s 1Q22 sales achievement of Rp1.21tn formed 23% of total FY22 marketing sales target of Rp5.2tn, and puts it on track to achieve said target by year end supported by 1) new launches of landed residential units for first-home owners, 2) market penetration into mid-rise apartments, and 3) increased demand for high-rise inventory units.
LPCK reports industrial land sales in an aggregate manner because one sale can significantly impact targets. 1Q22 sales of Rp33bn are down 84% YoY from 1Q21, as 1Q21 booked all-time high industrial land sales due to strong investment sentiment at the time.2
Exhibit 1: Marketing Sales (RpBn)
Exhibit 2: Marketing Sales Breakdown (RpBn)
In 1Q22, LPKR sales were driven by new launches at the Cendana residential clusters in Lippo Village, totalling about Rp470bn. By product type, landed residential was the primary driver, up 14% YoY in the quarter. Our legacy high-rise project, Bintaro Embarcadero, booked strong growth of 440% YoY in 1Q22, on total sales value of Rp19.5bn, compared to Rp2.6bn in 1Q21. Our wholly owned burial grounds, San Diego Hills, reported sales of Rp80.7bn in 1Q22, which represents a slight 4% YoY decline from 1Q21’s Rp83.7bn in line with subsiding COVID-19 cases nationwide.
Exhibit 3: Marketing Sales By Location
By location, Lippo Village was the largest contributor to sales in 1Q22 owing to successful launches of landed residential clusters. Cikarang followed with strong demand for Waterfront Estates landed residential.
Exhibit 4: Marketing Sales By Project
LPKR’s 1Q22 marketing sales achievement of Rp1.21tn is supported by persistently strong demand for landed houses targeted at first-home owners. To achieve Rp5.2tn in FY22 marketing sales, Management plans to continue to launch landed housing clusters and shophouse units while slowly expanding market reach into the higher-end segment as well as mid-rise apartments.
Exhibit 5: Payment Profile by Percentage
In 1Q22, 70% of total marketing sales were financed through mortgages as the biggest components of sales were landed residential at the Cendana clusters in Lippo Village and Waterfront Estates in Cikarang. Excluding non-residential sales, mortgage utilization for landed housing sales alone reached over 81%.
John Riady, the CEO of Lippo Karawaci stated, “Our property business is off to a strong start this year, booking marketing sales of Rp1.21tn. We are on track to achieving our FY22 target of Rp5.2tn, and we will build on this current momentum to launch more real estate products in the months to come.”
Mr. Riady continued, “We remain committed to providing affordable and quality housing for all. We continue to see strong demand from first-home owners for our landed residential projects – Cendana Homes in Lippo Village and Waterfront Estates in Cikarang – but we also see opportunities to broaden our market penetration by introducing new products at different price points. The successful launch of the Brava Homes series marks the beginning of an exciting year for our property business.”
11Q22 sales were down by 8% YoY compared to 1Q21, which was an exceptional quarter for the Company’s marketing sales. In 1Q21, LPKR launched its first mega residential cluster in Cendana Icon with a total of 787 units on offer, while Lippo Cikarang booked all-time high industrial land sales.1
2There was high demand for industrial land in 1Q21 as established businesses were looking beyond Covid-19, and the fast-growing digital economy players were expanding their distribution and warehouse networks, logistics centers and related investments.2
For more information, please contact:
Investor Relations:
Dr. Randi Bayu Prathama
Head of Investor Relations
Randi.Prathama@lippokarawaci.co.id
Mobile: +62811225873
Corporate Communications:
Nuke Prabandari
Head of Corporate Communication
Nuke.Prabandari@lippokarawaci.co.id
Office: +622125569000