Pt Pakuwon Jati Tbk · IDX:PWON
Pt Pakuwon Jati Tbk — Pakuwon Jati — Q3 2022 Earnings Presentation
54 slides from Pt Pakuwon Jati Tbk's earnings presentation, 2022
Slide 1: Pakuwon Jati Results Presentation – 3Q 2022
Confidential Pakuwon Jati Results Presentation – 3Q 2022
Slide 2: Disclaimer
Disclaimer By attending this presentation, you are agreeing to be bound by the restrictions set out below. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. The information and opinions contained in this presentation are intended solely for your
Slide 3: Table of contents
Table of contents Section 1 3Q 2022 Results in Brief 3 Section 2 Company Overview 9 Section 3 Key Credit Highlights 14 Section 4 Financial Highlights 29 Section 5 Notes 2028 Summary 33 Appendix Supporting asset details 35 2
Slide 4: 3Q 2022 Results in Brief
Section 1 3Q 2022 Results in Brief
Slide 5: Key highlights of 3Q 2022
Key highlights of 3Q 2022 ✓ 3Q 2022 revenue of Rp4,495bn (c.US$295m), displaying strong post-pandemic recovery ‒ 18.7% increase in revenue compared to 3Q 2021 ✓ 3Q 2022 EBITDA of Rp2,441bn (c.US$160m) with a resilient EBITDA margin of 54.3% ‒ 31.8% increase in EBITDA compared to 3Q 2021 Pakuwon City
Slide 6: Resilient performance of our recurring operations
Resilient performance of our recurring operations ✓ Rp2,788bn recurring revenue in 3Q 2022 ‒ 66% increase compared to recurring revenue of Rp1,675bn in 3Q 2021 ✓ Resilient performance in retail mall & hotel portfolio ‒ 92% of malls are occupied, and 48% of total NLA is expiring in 2026 or beyond ‒ 1
Slide 7: Strong rebound in our residential development activities
Strong rebound in our residential development activities ✓ 3Q 2022 pre-sales at Rp 1,169bn ‒ 16.2% increase compared to pre-sales in 3Q 2021 ✓ Sufficient land bank for more than 10 years of development, with 465,3 ha in total land bank ‒ Disciplined land banking strategy to sustain growth and high m
Slide 8: Bekasi superblock Update
Bekasi superblock Update Phase 1 expected to be completed by 2024/2025 Project summary • 5th superblock development of Pakuwon Jati 4 condominiums • Build upon successful fully-integrated concept, combining condos, retail and hotel GSA: 95,000 sqm – 4 condominiums with 95k GSA – 2 hotels with a tota
Slide 9: Bekasi superblock Update (cont’d)
Bekasi superblock Update (cont’d) Construction progress update : ✓ Marketing gallery completed in March 2021 ✓ Foundation works done in December 2021 ✓ Main contractor awarded in March 2022 ✓ Substructure works to start in June 2022 Tower 1 Tower 2 Marketing Gallery Project Site in Sept 22 8
Slide 10: Company Overview
fl PT. PAKUWON JATI Section 2 Company Overview
Slide 11: What sets Pakuwon Jati apart?
What sets Pakuwon Jati apart? Market leader in Jakarta c.776k sqm ✓ Indonesia’s leading retail mall developer and owner #1 + #3 Largest superblocks in South Jakarta Retail Malls NLA #1 Largest retail mall in South Jakarta Consistent track record of balancing recurring and #2 Largest mall portfolio i
Slide 12: Well balanced exposure with focus on Indonesia's two largest cities
Well balanced exposure with focus on Indonesia's two largest cities Jakarta and Surabaya are consistently among the fastest growing regions in Indonesia, and recent acquisitions in Central Java expand PWON’s footprint across the nation Jakarta Surabaya Central Java Hartono Mall Solo Grand Pakuwon Tu
Slide 13: 40 years track record of growth
40 years track record of growth 2021 2019 Refinanced Opening of Four US$250m bond with 2016 Points by Sheraton US$400m of 4.875% Surabaya Pakuwon Senior Unsecured Opening of Four Indah Notes due 2028 Points by Sheraton 2014 Surabaya in Jun- Acquired 67.1% of PT Start of construction 2016 2012 Pakuwo
Slide 14: Winning business strategy
Winning business strategy ✓ Continue to build strong recurring cashflows to complement sales of development properties ✓ Long term target to maintain balanced split between recurring and development income 1 Well balanced portfolio of recurring and ✓ Continue to construct, own, and manage high quali
Slide 15: Key Credit Highlights
Section 3 Key Credit Highlights
Slide 16: Key credit highlights
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Key credit highlights Experienced management team Leading Indonesian developer with with strong track record well-diversified portfolio 6 1 Strong long-term Strong recurring income base macroeconomic
Slide 17: Well-diversified portfolio
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Well-diversified portfolio Development and investment properties diversified across multiple segments and target customers provide income stability Revenue breakdown by segment Revenue breakdown by pr
Slide 18: Portfolio overview – Jakarta
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Portfolio overview – Jakarta Kota Kasablanka Gandaria City Bekasi Project Somerset Berlian Blok M Plaza Description Superblock Superblock Superblock Serviced apartment Retail mall • 12.9ha located rig
Slide 19: Portfolio overview – Surabaya
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Portfolio overview – Surabaya Tunjungan City Pakuwon Mall Grand Pakuwon Pakuwon City Royal Plaza Description Superblock Superblock Township Township Retail mall • 8.8ha located in prime central precin
Slide 20: Portfolio overview – Central Java
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Portfolio overview – Central Java Hartono Mall Yogyakarta Marriott Hotel Yogyakarta Hartono Mall Solo Asset pictures (all locations) Description Blok M Plaza • Middle-upper retail market in Yogyakarta
Slide 21: Strong recurring income base with track record of growth
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Strong recurring income base with track record of growth …service charge fully covered operating expenses in 3Q 2022 despite COVID-19 Recurring Revenue (Rp bn) Recurring revenue share as % of total 49
Slide 22: Growth of recurring income portfolio
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Growth of recurring income portfolio Plans to continue growing retail and hotel portfolio to maintain recurring income mix Retail Mall NLA Growth Office Leasing NLA Growth 3,500 Hotel Room Growth 3149
Slide 23: Retail: High quality mall portfolio
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Retail: High quality mall portfolio Minimal lease terminations, as tenants continue to be confident about the long-term viability of retail in Indonesia Historical Occupancy Lease Expiry Profile (NLA
Slide 24: Retail: Well-diversified tenant base
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Retail: Well-diversified tenant base Targeting the right tenant mix to support PWON’s malls as e-commerce resilient lifestyle destinations Retail mall tenant base breakdown by leased area (%) Top 10 t
Slide 25: Office: Stable occupancy supported by quality tenant base
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Office: Stable occupancy supported by quality tenant base Kota Kasablanka Office 88 Prudential Tower Pakuwon Tower Jakarta Gandaria Tower Pakuwon Center Surabaya Pakuwon Tower Surabaya Asset impressio
Slide 26: Hospitality: Portfolio hosting major hotel brands
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Hospitality: Portfolio hosting major hotel brands Sheraton Grand Jakarta Somerset Berlian Sheraton Surabaya Four Points Tunjungan Four Points Pakuwon The Westin Surabaya Ascott Waterplace Marriott Yog
Slide 27: Attractive residential developments
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Attractive residential developments Total pre-sales 3Q 2022 at Rp 1,169 bn, as a result of supportive regulatory measures Quarterly pre-sales (Rp bn) Pre-sales and construction update of highrise proj
Slide 28: Sufficient land bank for >10 years of development
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Sufficient land bank for >10 years of development Disciplined land banking strategy to sustain growth and high margins; further land banking purely opportunistic and discretionary Land bank summary La
Slide 29: Superior operational margins
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 4. Superior margins Superior operational margins Resilient profitability underpinned by superior operational margins EBITDA margin (%) Gross profit margin by segment (%) Gross profit 48.8 48.4 45.6 52.6 57.2 56.3 margin
Slide 30: Financial Highlights
Section 4 Financial Highlights
Slide 31: Strong sales growth and balanced revenue
Strong sales growth and balanced revenue Revenue from well diversified sources and marketing-sales recovered gradually to pre-pandemic levels Pre-sales (Rp'bn) Revenue (Rp'bn) Superblock share1 Recurring revenue share 59.2% 55.4% 52.1% 43.4% 39.5% 49.6% 49.0% 51.3% 57.8% 47.2% 44.2% 62.0% 2,203 7,08
Slide 32: Resilient profitability profile
Resilient profitability profile Gross profit and EBITDA margins remained resilient Gross profit1 (Rp'bn) EBITDA (Rp'bn) Gross profit margin EBITDA margin 57.2% 56.3% 48.8% 48.4% 45.6% 52.6% 55.5% 55.3% 51.6% 51.1% 48.9% 54.3% 4,050 4,058 3,927 3,983 2,764 2,917 2,364 2,441 1,941 2,052 1,852 1,727 2
Slide 33: Robust financial profile
Robust financial profile Extended maturity profile; USD debt exposure continues to be well-hedged Capitalization table (as at 30-Sept-2022) Debt maturity profile (Rp bn) Average debt maturity of 5.7 years, with average cost of debt 4.9% p.a.2 Rp bn US$ m As % of total Cash & cash equivalents 7,909.9
Slide 34: Notes 2028 Summary
fl PT. PAKUWON JATI Section 5 Notes 2028 Summary
Slide 35: Bond summary
Bond summary Remark Initial Notes Additional Notes Issuer PT Pakuwon Jati Tbk PT Pakuwon Jati Tbk Series Name Senior Unsecured Note due 2028 Senior Unsecured Note due 2028 Nominal Value US$300,000,000 US$100,000,000 Issuance Date April 29, 2021 May 17, 2021 Issue Price 100% 103.118% Tenor 7 years 7
Slide 36: Supporting asset details
Appendix Supporting asset details
Slide 37: Kota Kasablanka
Kota Kasablanka Superblock Residential • 4 condos, 1,077 units, GSA: 96k sqm • 3 additional condos, GSA: 121k sqm Office (for sale) • Tower A GSA: 36k sqm • Tower C GSA: 42.8k sqm Retail • Middle to upper market mall with NLA of 119k sqm Office (for lease) • Tower A / B / C with NLA of 21k sqm / 32k
Slide 38: Kota Kasablanka — Phase 3, 4, and 5
Kota Kasablanka — Phase 3, 4, and 5 Superblock Residential • Phase 4&5 condos, GSA : 111k sqm Retail • NLA : 42k sqm Hospitality • 300 rooms, 4-star hotel • 133 rooms, 3-star hotel Notes: Projects in red are currently under construction or targeted to start construction within the next 2 years, and
Slide 39: Gandaria City
Gandaria City Superblock Residential • 2 condos, 715 units Office (for sale) • Tower A GSA: 37k sqm Retail • Middle to upper market with NLA of 100k sqm Office (for lease) • Tower A NLA: 21k sqm Hospitality • Grand Sheraton, 293 rooms, 5-star hotel Source: Google Maps 38
Slide 40: Gandaria City — Phase 2
Gandaria City — Phase 2 Superblock Residential • 2 condos GSA: 83k sqm Office (for sale) • GSA: 11k sqm Office (for lease) • NLA: 11k sqm Notes: Projects in red are currently under construction or targeted to start construction within the next 2 years, and are based on estimates. GSA/NLA and number
Slide 41: Pakuwon Mall Bekasi
Pakuwon Mall Bekasi Superblock Residential • 4 condominiums, 2.991 unit • GSA: 95k sqm Retail • NLA: 43k sqm Hospitality • Four Points, 252 rooms, 4-star hotel • Fairfield, 132 rooms, 4-star hotel Notes: Projects in red are currently under construction or targeted to start construction within the ne
Slide 42: Blok M Plaza retail mall
Blok M Plaza retail mall Retail mall Retail • NLA: 30k sqm Source: Google Maps 41
Slide 43: Tunjungan City
Tunjungan City Superblock Residential • TP5: TP Residence GSA: 30k sqm • TP6: One Icon GSA: 58k sqm Office (for sale) • TP5: Pakuwon Center GSA: 10.5k sqm • TP6: Pakuwon Tower GSA: 28k sqm Retail • NLA: 149k sqm Office (for lease) • TP5: Pakuwon Center NLA: 9k sqm • TP6 : Pakuwon Tower NLA : 14k sqm
Slide 44: Tunjungan City — Phase 5 and 6
Tunjungan City — Phase 5 and 6 Superblock Source: Google Maps 43
Slide 45: Pakuwon Mall
Pakuwon Mall Superblock Residential • Phase 2: two towers GSA: 60k sqm • Phase 3: one tower GSA: 41k sqm • Phase 4: three towers GSA: 143k sqm Retail • PM NLA: 135k sqm • PTC NLA: 46k sqm (NLA excludes sold area of 5,467 sqm) Hospitality • Four Points, 317 rooms, 4-star hotel • The Westin, 204 rooms
Slide 46: Pakuwon Mall — Phase 2 and 3
Pakuwon Mall — Phase 2 and 3 Superblock Source: Google Maps 45
Slide 47: Pakuwon Mall — Phase 4
Pakuwon Mall — Phase 4 Superblock Source: Google Maps 46
Slide 48: Pakuwon Mall — Phase 5
Pakuwon Mall — Phase 5 Superblock Residential • GSA: 120k sqm Retail Mall GFA: 71,000 sqm Notes: Projects in red are currently under construction or targeted to start construction within the next 2 years, and are based on estimates. GSA/NLA and number of units/rooms are estimates.NLA: Net Leasable A
Slide 49: Grand Pakuwon
Grand Pakuwon Township Residential • House and land lot community Commercial units/ plots • Shophouses, schools, and a hospital Retail • Food Junction NLA: 61k sqm Source: Google Maps 48
Slide 50: Pakuwon City
Pakuwon City Township Residential • House and land lot community • 4 Educity condos GSA:103k sqm • East Coast Mansion – ECM Phase 2 : one tower GSA : 47k sqm – ECM Phase 3 : two towers GSA : 47k sqm Commercial units/ plots • Shophouses, university, and schools Retail • PCM Phase 1+2 NLA: 31k sqm • P
Slide 51: Royal Plaza
Royal Plaza Retail mall Retail • NLA: 53k sqm (excludes sold area of 15,226 sqm) Source: Google Maps 50
Slide 52: Opportunistic acquisitions in line with strategy
Opportunistic acquisitions in line with strategy Broadening exposure beyond Jakarta and Surabaya on the back of an opportunistic acquisition during the pandemic Acquisition summary • Acquired from one seller two shopping malls and a hotel in Central Java – Yogyakarta: largest shopping mall (77k sqm
Slide 53: Hartono Mall and Marriott Hotel Yogyakarta
Hartono Mall and Marriott Hotel Yogyakarta Retail mall Retail • NLA: 77k sqm Hospitality • Marriott, 347 rooms, 5-star hotel Source: Google Maps 52
Slide 54: Hartono Mall Solo
Hartono Mall Solo Retail mall Retail • NLA: 33k sqm Source: Google Maps 53