PT Pakuwon Jati Tbk

Overview Key strengths Key risks Established mid-tier developer with good brand recognition in Jakarta and Surabaya Limited scale of operations Good financial position with moderate leverage and high recurring income. Execution risk in Indonesia's small and concentrated real estate market We expect Pakuwon's debt-to-EBITDA ratio to ease to 2.0x-2.2x in 2022 and 2023, backed by a gradual operational recovery as consumer sentiment improves in Indonesia. The country is making a fast recovery from a difficult 2021, when high COVID case numbers disrupted businesses and dampened demand. Further, buoyant commodity prices and an ongoing economic recovery will support consumer sentiment and spending. Rental waivers are expected to reduce substantially as mall footfalls and occupancy rates rise in its shopping malls. This

...PT Pakuwon Jati TBk (Pakuwon)'s sizable cash on hand and operational recovery from the pandemic will improve its financial cushion over the next two years. We expect Pakuwon's debt-to-EBITDA ratio to ease to 2.0x-2.2x in 2022 and 2023, backed by a gradual operational recovery as consumer sentiment improves in Indonesia. The country is making a fast recovery from a difficult 2021, when high COVID case numbers disrupted businesses and dampened demand. Further, buoyant commodity prices and an ongoing economic recovery will support consumer sentiment and spending. Rental waivers are expected to reduce substantially as mall footfalls and occupancy rates rise in its shopping malls. This tracks an easing of the pandemic in Indonesia. We expect to see a recovery of recurring income in 2022 to 90% of pre-COVID and exceeding the pre-COVID level by 2023. Along with its operational recovery, Pakuwon has a large cash balance of Indonesian rupiah (IDR) 6.4 trillion as of the end of 2021, against IDR2.9...

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