Jakarta - PT Lippo Karawaci Tbk (“LPKR” or “Company”), Indonesia’s leading real estate and healthcare platform based on revenue, announced FY22 marketing sales of IDR 4.76tn, equivalent to 92% of the FY22 target.
Over 53% of FY22 marketing sales were driven by landed housing projects targeting first-home owners, which included the Cendana Homes series, Waterfront Uptown Estates, Holland Village Manado, and residential projects in Tanjung Bunga.
Exhibit 1: Marketing Sales (in IDR bn)
Compared to last year’s performance, FY22 marketing sales declined slightly by 4% YoY. Based on sales performance by location, there was a decline in sales of burial plots in Karawang (San Diego Hills) compared to peak sales during the COVID pandemic in 2021, as well as relatively slower sales for landed residentials due to increases in inflation and mortgage rates over the past 12 months.
Exhibit 2: Marketing Sales by Location
In terms of sales contribution by location, Lippo Village remains the largest contributor with 37%, followed by Lippo Cikarang with 29%. The increased contribution from Makassar and Others was primarily due to one-off land plot sales.
Exhibit 3: Marketing Sales by Project
In FY22, LPKR Holdco marketing sales of IDR 3,390bn were mainly driven by the Cendana Homes series in Lippo Village, totalling IDR 1,355bn or equivalent to 40% of total Holdco sales. Holdco sales also comprised of land plot sales of IDR 865bn in 7 locations, residential projects in Makassar
of IDR 319bn, sales of existing high-rise inventories of IDR 294bn, and our wholly-owned cemetery land, San Diego Hills, which reported sales of IDR 205bn.
Lippo Cikarang (JCI: LPCK.JK) achieved IDR 1,376bn in marketing sales, of which 68% came from residential project launches (mainly Waterfront Uptown Estates and Cendana Spark) and 25% from sales of industrial lots worth IDR 340bn.
Exhibit 4: Payment profile composition
In terms of payment profile composition, 67% of total marketing sales were financed through mortgages. Excluding non-residential sales, mortgage utilization for landed housing sales alone reached over 85%. We continue to see persistently strong demand in the affordable housing segment, supported by high mortgage utilization, implying high end-user demand.
Exhibit 5: Project Handover – Cendana Parc
The Company has successfully handed over 495 units in Cendana Parc (Phase 1) as of 31 December 2022, ahead of schedule following its launch in June 2021. This further reflects the Company’s proven commitment and successful management of construction timelines to deliver homes to customers on time.
Exhibit 6: New Product Launch – Newville in Lippo Cikarang
Lippo Cikarang is known as the preferred city to live in the eastern corridor of Jakarta, with a multi- cultural community including Japanese, Korean, and Chinese expatriates. To cater to this unique segment, LPCK launched Newville on 26 November 2022, a new concept of residential and commercial blocks that seeks to create a new vibrant urban living in Lippo Cikarang. There were 2 blocks (Alpha and Gamma) of 5-storey buildings launched during the event comprising a mix of residential and commercial units, with 2 types of residential units offered, including Superior (24,35 m2) and Deluxe (28,96 m2), with price starting from IDR 279mn and IDR 333mn, respectively. As of 31 December 2022, the Company successfully sold 226 units or equivalent to a take-up rate of 72%.
Exhibit 7: New Product Launch – Cendana Essence in Lippo Village
In 17 December 2022, LPKR successfully launched Cendana Essence, another cluster from the Cendana Homes series in Lippo Village. There were 2 types of units, including Essence Villa (60 m2) and Essence Residence (82.5 m2 and 74.25 m2), with price starting from IDR 771mn and IDR 920mn, respectively. Out of 222 units released, 187 units were sold during the launch, or equivalent to a take-up rate of over 84%.
FY23 Marketing Sales Guidance
Entering 2023, LPKR has set a target of IDR 4.9tn for FY23 marketing sales guidance, which will be driven mostly by new residential products, including landed, low-rise and mid-rise projects in Lippo Village and Lippo Cikarang. Nevertheless, we continue to observe with caution the macro risk factors that may affect marketing sales going forward.
John Riady, the CEO of LPKR said, “We are proud of what we have achieved in 2022, but need to manage an increasingly challenging macro headwinds in 2023, including inflationary pressures and rising interest rate environment, which may lead to a weakening demand. Going forward, we have prepared a strong pipeline of launches, and we will continue to deliver and introduce new products at diversified price points to attract new buyer segments and larger pockets of demand.”
About Lippo Karawaci (“LPKR”) (www.lippokarawaci.co.id)
Listed on the Indonesia Stock Exchange, Lippo Karawaci (“LPKR”) is Indonesia’s leading real estate and healthcare platform, with a presence in 44 cities across Indonesia and total assets of US$3.6 billion as at 31 December 2021. Our core business comprises of urban residential developments, lifestyle malls and healthcare. We are also actively involved in integrated developments, hospitality, township development and management, as well as asset management services.
As a leading real estate developer and township operator with 1,332 ha of landbank ready for development, LPKR develops and manages urban developments primarily in Java and Sulawesi, including at our flagship township Lippo Village in Tangerang. Through LPKR’s two publicly listed subsidiaries, PT Lippo Cikarang Tbk and PT Gowa Makassar Tourism Development Tbk, of which we own 84.0% and 62.7% respectively, we also develop and manage the townships of Lippo Cikarang in Bekasi and Tanjung Bunga in Makassar.
In addition, LPKR owns 58.05% of PT Siloam International Hospitals Tbk, Indonesia’s leading private hospital network, with 41 hospitals in 30 cities nationwide. Aside from healthcare, we manage 59 malls across Indonesia, and hold a 47.0% stake in Lippo Malls Indonesia Retail Trust, a Singapore-listed REIT with S$1.81 billion of assets under management as of December 31, 2021. We also operate 10 hotels under the Aryaduta brand, including a country club and golf course.
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 Communications Nuke.Prabandari@lippokarawaci.co.id Office: +622125569000
This press release has been prepared by PT Lippo Karawaci Tbk (“LPKR”) and is circulated for the purpose of general information only. 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.
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