Property Developer Owned By Conglomerate Mochtar Riady Targets Marketing Sales Of Rp5.2 Trillion In 2022

JAKARTA - Property developer owned by Mochtar Riady conglomerate, PT Lippo Karawaci Tbk, earned Rp4.4 trillion in pre-sales revenue (marketing sales) in the third quarter of 2021. This realization has exceeded this year's revised marketing sales target of Rp4.2 trillion.

Meanwhile, previously the issuer with the stock code LPKR targeted marketing sales of Rp3.5 trillion this year. Lippo Karawaci CEO John Riady is optimistic that the company can record marketing sales of IDR4.7 trillion when closing the book at the end of the year.

"The pre-sales achievement during 2021 is estimated to reach Rp4.7 trillion and in 2022 it will reach Rp5.2 trillion," John said in a press release, quoted on Tuesday, November 30.

The strengthening of the company's property business has prompted international rating agency Moody's Investor Service to raise the outlook for the company's debt rating.

Moody's raised the issuer's debt rating outlook with the stock code LPKR to positive from previously stable. A positive outlook was given after Moody's reviewed LPKR's business performance, financial position, and liquidity.

"We are pleased with Moody's 'Positive' rating outlook supported by improved cash flow, increased liquidity, and strong pre-sales from the company," John wrote.

Meanwhile, Moody's is said to open an opportunity to raise LPKR's rating to B2 from B3 if the operating cash flow of the holding company is in a positive area. In addition, other conditions are also if LPKR does not depend on asset sales and the debt ratio shows improvement.

Based on the financial report ending on September 30, 2021, Lippo Karawaci experienced a 44.20 percent increase in revenue to Rp10.95 trillion from the position of Rp7.59 trillion in the third quarter of 2021.

The loss for the current period attributable to owners of the parent company was also drastically reduced to a loss of Rp573.29 billion from the previous loss of Rp2.34 trillion. Lippo Karawaci's EBITDA increased by 84 percent in line with the growth in its property and healthcare business.