Pt Pakuwon Jati Tbk · IDX:PWON
Pt Pakuwon Jati Tbk — Pakuwon Jati — H1 2023 Earnings Presentation
56 slides from Pt Pakuwon Jati Tbk's earnings presentation, 2023
Slide 1: Pakuwon Jati Results Presentation – 1H 2023
Confidential Pakuwon Jati Results Presentation – 1H 2023
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 1H 2023 Results in Brief 3 Section 2 Company Overview 10 Section 3 Key Credit Highlights 16 Section 4 Financial Highlights 31 Section 5 Notes 2028 Summary 35 Appendix Supporting asset details 37 2
Slide 4: 1H 2023 Results in Brief
Section 1 1H 2023 Results in Brief
Slide 5: Key highlights of 1H 2023
Key highlights of 1H 2023 ✓ 1H 2023 revenue of Rp2,897bn (c.US$192,8m), displaying strong post-pandemic recovery ‒ 5.3% increase in revenue compared to 1H 2022 ✓ 1H 2023 EBITDA of Rp1,622bn (c.US$107,9m) with a resilient EBITDA margin of 56.0% ‒ 9.9% decrease in EBITDA compared to 1H 2022 Pakuwon Ci
Slide 6: Resilient performance of our recurring operations
Resilient performance of our recurring operations Rp2,209bn recurring revenue in 1H 2023 ✓ ‒ 24% increase compared to recurring revenue of Rp1,781bn in 1H 2022 • Retail leasing increased 22.2% • Hotel and service apartment increased 37.9% • Office leasing increased 4.2% ✓ Resilient performance in re
Slide 7: Residential development activities update
Residential development activities update ✓ 1H 2023 pre-sales at Rp 600bn ‒ Landed 43% ‒ Highrise 57% ✓ 2 new tower launches : ‒ Bella Tower in Superblock Pakuwon Mall Bekasi ‒ Lancaster Tower in Superblock Pakuwon Mall Surabaya ✓ Sufficient land bank for more than 10 years of development, with 467,
Slide 8: Future Development
Future Development Broadening exposure across the nation on the back of an opportunistic acquisition Acquisition summary • Total area 12.4 Ha • In the city center of Batam, 5 minutes from Nagoya Hill • Acquisition will be fully cash financed • 6th superblock of Pakuwon Jati : ‒ 1 retail mall with 10
Slide 9: Bekasi superblock Update
Bekasi superblock Update Phase 1 expected to be completed by 2024/2025 Project summary • 5th superblock development of Pakuwon Jati • Build upon successful fully-integrated concept, combining condos, retail and hotel – 4 condominiums with 95k GSA – 2 hotels with a total of 384 rooms – 1 retail mall
Slide 10: Bekasi superblock Update (cont’d)
Bekasi superblock Update (cont’d) Construction progress as of June 30, 2023 Tower 2 Tower 1 Tower 3 Tower 2 Tower 1 Tower 5 Tower 5 Tower 4 9
Slide 11: Company Overview
Pe PT. PAKUWON JATI Section 2 Company Overview
Slide 12: What sets Pakuwon Jati apart?
What sets Pakuwon Jati apart? Market leader in Jakarta Indonesia’s leading retail mall developer and owner c.784k sqm ✓ #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 13: 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 Jakarta Surabaya Grand Pakuwon Tunjungan City Kota Kasablanka Somerset Berlian Pakuwon City Gandaria City Blok M Plaza Pakuwon Mall Pakuwon Mall Be
Slide 14: Expand PWON’s footprint across the nation
Expand PWON’s footprint across the nation Central Java Bali Batam Pakuwon Mall Solo Baru Pakuwon MallJogja Yogyakarta Marriott Hotel ✓ 2 retail malls (Pakuwon Mall Solo Baru, Pakuwon ✓ 1 hotel (Four Points by Sheraton Bali, Kuta) ✓ Landplot (total area 12,4 Ha) Mall Jogja) ✓ To be developed in 2025
Slide 15: 40 years track record of growth
40 years track record of growth 2021 2023 2019 Refinanced Acquired Four US$250m bond with Points by Opening of Four US$400m of 4.875% Sheraton Bali, 2016 Points by Sheraton Senior Unsecured Kuta Opening of Four Surabaya Pakuwon Indah Notes due 2028 Points by Sheraton 2014 Surabaya in Jun- Acquired 6
Slide 16: 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 17: Key Credit Highlights
Section 3 Key Credit Highlights
Slide 18: Key credit highlights
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 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 and property market
Slide 19: Well-diversified portfolio
1. Diversified portfolio 2. Recurring income 3. Attractive development projects Well-diversified portfolio Development and investment properties diversified across multiple segments and target customers provide income stability Revenue breakdown by segment Revenue breakdown by project Central Bali 6
Slide 20: Portfolio overview – Jakarta
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 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 right next to Jakarta’s
Slide 21: Portfolio overview – Surabaya
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 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 precinct • 14.6ha located
Slide 22: Portfolio overview – Central Java
1. Diversified portfolio 2. Recurring income 3. Attractive development projects Portfolio overview – Central Java Pakuwon Mall Jogja Yogyakarta Marriott Hotel Pakuwon Mall Solo Baru Asset pictures (all locations) Description Blok M Plaza • Middle-upper retail market in Yogyakarta, • Marriott hotel i
Slide 23: Portfolio overview – Bali
1. Diversified portfolio 2. Recurring income 3. Attractive development projects Portfolio overview – Bali Four Points by Sheraton Bali, Kuta Asset pictures Four Points by Sheraton Bali, Kuta Description • Located in the heart of the Legian- Kuta region • Only seven kilometers from Bali Ngurah Rai In
Slide 24: Strong recurring income base with track record of growth
1. Diversified portfolio 2. Recurring income 3. Attractive development projects Strong recurring income base with track record of growth …service charge fully covered operating expenses in 1H 2023 as post pandemic recovery Recurring Revenue (Rp bn) Recurring revenue share as % of total 51.3% 57.8% 4
Slide 25: Growth of organic recurring income
1. Diversified portfolio 2. Recurring income 3. Attractive development projects Growth of organic recurring income Plans to continue growing retail and hotel portfolio to maintain recurring income mix Retail Mall NLA Growth Office Leasing NLA Growth Hotel Room Growth (in thousand) (in thousand) 1,00
Slide 26: Retail: High quality mall portfolio
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 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 breakdown) Occupancy
Slide 27: Retail: Well-diversified tenant base
1. Diversified portfolio 2. Recurring income 3. Attractive development projects Retail: Well-diversified tenant base Targeting the right tenant mix to boost PWON’s malls as lifestyle destinations Retail mall tenant base breakdown by leased area (%) Several new tenants : Others 1 El ectronics 6% 2% H
Slide 28: Office: Stable occupancy supported by quality tenant base
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 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 impression Description • 39 f
Slide 29: Hospitality: Portfolio hosting major hotel brands
1. Diversified portfolio 2. Recurring income 3. Attractive development projects Hospitality: Portfolio hosting major hotel brands Sheraton Grand Jakarta Somerset Berlian Sheraton Surabaya Four Points Tunjungan Four Points Pakuwon Indah The Westin Surabaya Ascott Waterplace Marriott Yogyakarta Four P
Slide 30: Attractive residential developments
1. Diversified portfolio 2. Recurring income 3. Attractive development projects Attractive residential developments Total pre-sales 1H 2023 at Rp 600 bn, supported by two new tower launches Historical pre-sales (Rp bn) Pre-sales and construction update of highrise projects Handover Superblock / Town
Slide 31: Sufficient land bank for >10 years of development
1. Diversified portfolio 2. Recurring income 3. Attractive development projects 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 Land bank breakdown by
Slide 32: Financial Highlights
Section 4 Financial Highlights
Slide 33: 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 55.4% 52.1% 43.4% 47.7% 47.4% 51.8% 51.3% 57.8% 47.2% 64.6% 64.7% 76.2% 7,202 5,98
Slide 34: 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 56.3% 48.8% 48.4% 53.8% 51.5% 55.9% 55.3% 51.6% 51.1% 54.6% 53.6% 56.0% 4,058 3,983 3,219 3,271 2,764 2,917 1,941 2,052 1,417 1,618 1,475 1,622 2
Slide 35: Robust financial profile
Robust financial profile Extended maturity profile; USD debt exposure continues to be well-hedged Capitalization table (as at 30-Jun-2023) Debt maturity profile (Rp bn) Rp bn US$ m Average debt maturity of 4.9 years, with average cost of debt 4.9% p.a.2 As % of total Cash & cash equivalents 7,309.1
Slide 36: Notes 2028 Summary
Pe PT. PAKUWON JATI Section 5 Notes 2028 Summary
Slide 37: 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 38: Supporting asset details
Appendix Supporting asset details
Slide 39: 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: 32k sqm Retail • Middle to upper market mall with NLA of 116k sqm Office (for lease) • Tower A / B / C with NLA of 21k sqm / 32k s
Slide 40: Kota Kasablanka — Phase 4 and 5
Kota Kasablanka — Phase 4 and 5 Superblock Residential • 2 condos, GSA : 111k sqm Retail • NLA : 42k sqm Hospitality • 300 rooms, 5-star hotel • 133 rooms, 4-star hotel Notes: Projects in red are currently under construction or targeted to start construction within the next 2 years, and are based on
Slide 41: Gandaria City
Gandaria City Superblock Residential • 2 condos, 118k sqm Office (for sale) • GSA: 37k sqm Retail • Middle to upper market with NLA of 100k sqm Office (for lease) • NLA: 21k sqm Hospitality • Grand Sheraton, 293 rooms, 5-star hotel Source: Google Maps 40
Slide 42: Gandaria City — Phase 2
Gandaria City — Phase 2 Superblock Residential • 1 condos GSA: 73k sqm Office (for sale) • GSA: 11k sqm Retail • NLA: 12k 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 estimate
Slide 43: 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 44: Blok M Plaza
Blok M Plaza Retail mall Retail • NLA: 30k sqm Source: Google Maps 43
Slide 45: 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 46: Tunjungan City — Phase 5 and 6
Tunjungan City — Phase 5 and 6 Superblock Source: Google Maps 45
Slide 47: 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: 155k 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 48: Pakuwon Mall — Phase 2 and 3
Pakuwon Mall — Phase 2 and 3 Superblock Source: Google Maps 47
Slide 49: Pakuwon Mall — Phase 4
Pakuwon Mall — Phase 4 Superblock Source: Google Maps 48
Slide 50: Pakuwon Mall — Phase 5
Pakuwon Mall — Phase 5 Superblock Residential • Phase 5 : three tower 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 estima
Slide 51: 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 50
Slide 52: 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 : 50k sqm Commercial units/ plots • Shophouses, university, and schools Retail • PCM Phase 1+2 NLA: 31k sqm • P
Slide 53: Royal Plaza
Royal Plaza Retail mall Retail • NLA: 53k sqm (excludes sold area of 15k sqm) Source: Google Maps 52
Slide 54: Pakuwon Mall Jogja and Yogyakarta Marriott Hotel
Pakuwon Mall Jogja and Yogyakarta Marriott Hotel Retail mall Retail • NLA: 72k sqm Hospitality • Marriott, 347 rooms, 5-star hotel Source: Google Maps 53
Slide 55: Pakuwon Mall Solo Baru
Pakuwon Mall Solo Baru Retail mall Retail • NLA: 32k sqm Source: Google Maps 54
Slide 56: Four Points by Sheraton Bali, Kuta
Four Points by Sheraton Bali, Kuta Hospitality Hospitality • Four Points by Sheraton Bali, Kuta, 185 rooms, 4-star hotel 55