Jakarta - PT Lippo Karawaci Tbk ("LPKR" or "Company"), Indonesia’s leading real estate and healthcare platform based on total assets and revenue, today announced its FY21 results. Reported revenues increased by 38% to Rp16.53 trillion, EBITDA increased by 94% to Rp3.69 trillion. Net loss reduced significantly by Rp7.3 trillion to close at Rp1.60 trillion compared to net loss of Rp8.9 trillion in FY20. Adjusting for the impact from the LMIRT transaction, core revenues would have increased by 28.1% % to Rp15.33 trillion and EBITDA by 64.2% to Rp3.13 trillion.
Despite Covid-19, Real Estate Development revenue increased by 36% to Rp4.41 trillion from Rp3.25 trillion as the Company’s core property business continues to display a strong turnaround. Revenues were supported by recently completed landed residential projects, Waterfront Estates in Cikarang and Cendana Homes in Lippo Village, as well as apartment unit handovers at Holland Village Jakarta, Embarcadero in Bintaro, Hillcrest and Fairview Towers in Lippo Village, and Orange County in Cikarang, representing 66% of property revenues. Furthermore, the property business continues to show signs of resilience as marketing sales continue to surpass corporate targets. Marketing sales for the full year of 2021 reached Rp4.96 trillion, representing an increase of 86% YoY and 18% above the upwardly revised target of Rp4.20 trillion. Management expects sales momentum to remain strong in 2022 with marketing sales expected to reach Rp5.20 trillion, or increasing by 5% YoY from an already strong FY21 figures.
Strong Siloam Results Despite Decrease in Covid-19 Impact
Siloam Hospitals’ performance remained very strong, EBITDA increased by 34.2% to a record high of Rp1.96 trillion in FY21 compared to Rp1.46 trillion in the previous FY20. Siloam’s FY21 revenue reached Rp9.38 trillion, up from Rp7.11 trillion in the prior year. This helped support Siloam’s Net Profit After Tax that increased by 481% to Rp674 billion from Rp116 billion in the previous FY20.
Through FY21, SILO has conducted over 730k PCR tests and more than 1.85 million rapid and serology tests. In line with declining new Covid-19 cases nationwide towards the end of 2021, Siloam’s revenue contribution from Covid-19 related treatment was below 1% in 4Q21, the lowest since the beginning of the pandemic. Without Covid-19 treatment, 9 ramping up non-Covid hospitals reported positive EBITDA. Siloam will continue to open about 1-2 new hospitals every year.
Overall, our Healthcare and other services revenue increased by 40% in FY21 to Rp12.09 trillion from Rp8.63 trillion. Decreasing Covid-19 cases in 4Q21 is positive for our malls, hotels, parking and other businesses. In monthly data from December 2021, footfall traffic in malls recovered to 60% of pre-pandemic levels after having reached 48% in June, while our hotels also reached their highest occupancy level since the start of the pandemic. Pillar 2 revenues included 10 months of LMIRT consolidation of Rp1.20 trillion, normalizing this figure and the segment revenues reported 26.2% YoY growth.
LPCK Revenues Supported by Handovers of Waterfront Estates
Lippo Cikarang reported flat revenue growth at Rp1.85 trillion in FY21 compared to Rp1.84 trillion in FY20 Revenue booked in FY21 was supported by handover of units in the first two clusters of the landed residential located at Waterfront Estates, while revenue booking in FY20 was from handover of apartments in Orange County . As of Dec 2021, about 92% and 98% of units in Orange County and Waterfront Estates have been handed over. Lippo Cikarang reported Rp1.23 trillion in marketing sales in FY21, representing an increase of 20% YoY and representing 25% contribution to total marketing sales in FY21 supported by industrial and affordable housing clusters.
Consolidated Gross Profit increased by 54.0% YoY to Rp7.11 trillion in FY21
LPKR booked gross profit of Rp7.11 trillion in FY21 compared to Rp4.62 trillion in FY20. The Real Estate Development segment reported an increase in Gross Profit of 92.2% YoY to Rp1.62 trillion in FY21 from Rp844 billion in FY20. The largest increase in gross profit was from the LMIRT business consolidation for 10 months in 2021. Excluding the impact from consolidation, the Real Estate Development segment reported the highest increase in gross profit as higher margin landed residential projects represented a 4-fold increase to Rp779 billion in gross profit. Meanwhile, the malls and fund management in pillar 2 and pillar 3 recorded recovery of 77.2% YoY growth with improving vaccination rates.
Consolidated FY21 EBITDA increased by 93.5% YoY to Rp3.69 trillion
LPKR’s reported EBITDA in FY21 increased by 93.5% YoY to Rp3.69 trillion from Rp1.91 trillion in FY20. Siloam Hospitals reported EBITDA growth of 34.2% YoY to Rp1.96trillion, driven by higher EBITDA at Siloam Mampang and Kelapa Dua hospitals which are utilized for the treatment of Covid-19. After normalizing for the EBITDA of Rp561 billion contributed by LMIRT, our core EBITDA growth was 64.2% across the consolidated business. Following this adjustment, the reported Rp2.80 trillion in Others (Real Estate Management & Services) declines to Rp2.24 trillion, an increase of 20.3% year on year from Rp1.86 trillion in FY20. The higher EBITDA in the Real Estate Development business is led by handovers in recently completed projects in Lippo Village (Cendana landed residential projects), Holland Village and Embarcadero.
Consolidated EBITDA Margin has improved to 22% in FY21 from 16% in FY20. The biggest driver of the EBITDA margin strength is the high margin Covid-19 treatment and testing business at our healthcare segment. On an as reported basis, net loss after tax totaled Rp1.60 trillion and representing a significant improvement from the Rp8.9 trillion loss reported in FY20.
Recent Events
LPKR launched an extension of affordable landed residential project, Cendana Cove in February 2022 in Lippo Village. Demand for product within the segment remains strong as all 252 homes were sold in the first few hours of the launch totaling Rp263.4bn.
In early December 2021, LPKR sold approximately 11% of its ownership in LMIRT to Tokyo Century Corporation for total purchase consideration of SGD67 million resulting in a decrease in LPKR’s ownership in LMIRT to 47.0% from previously 58%. This further solidifies the company’s focus on Real Estate and Healthcare.
In March 2022, Lippo Karawaci sold its first launch of a higher priced product under the Brava brand. The Company sold 12 units that were valued at Rp49.3 billion on the launch date.
John Riady, the CEO of Lippo Karawaci stated, “In 2021 our property business continued to strengthen as marketing sales increased 86% year on year to Rp4.96 trillion. Our hospital business reported its most profitable results and as the year ended we have seen improvements in our malls, hotels and ancillary businesses. Currently, we are well positioned to build upon our 2021 results as we move into 2022.” Mr. Riady continued, “Indonesia is rapidly reopening and returning to normal, a welcome sign that we believe will result in further improvements in our business lines.”
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 total assets of US$3.6 billion at 31 December 2021. Our core business comprises 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.
Currently, the Company has a presence in 40 cities, and is a leading Indonesian property developer with 1,332 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 29 cities nationwide.
LPKR holds a 47.0% ownership stake in Lippo Malls Indonesia Retail Trust, a listed REIT in Singapore with S$1.81bn of assets under management at 31 December 2021.
For more information, please contact:
Investor Relations:
Vilhelmina Kwee
Investor Relations
Vilhelmina@lippokarawaci.co.id
Office: +622125669000
Corporate Communications:
Nuke Prabandari
Head of Corporate Communication
Nuke.Prabandari@lippokarawaci.co.id
Office: +622125569000