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Moody's upgrades Pakuwon Jati’s rating to Ba2
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Gandaria City Mall, located in South Jakarta, has become a recurring income source for PT Pakuwon Jati. (Kontak/Baihaki)
M
oody’s Investors Service has upgraded publicly listed property firm PT Pakuwon Jati’s corporate rating from Ba3 to Ba2 with a stable outlook. The same upgrade has also been applied to the firm’s subsidiary Pakuwon Prima.
Jacintha Poh, Moody’s vice president and senior analyst, said the upgrade reflected Surabaya-based Pakuwon Jati's continued growth in scale and its maintenance of a strong financial and liquidity profile.
Despite the lackluster demand for property, Pakuwon Jati’s revenues for the 12 months ending on March 31 increased by 6 percent year-on-year (yoy) to Rp 5 trillion (US$373.21 million). Moody’s attributed the revenue growth to a 9 percent increase in recurring revenues and a 2 percent increase in development revenues.
Moody’s expects Pakuwon Jati’s revenues to grow about 10 percent, with 50 percent of the revenues coming from recurring income from its investment properties, as well as its ongoing financial discipline.
“Pakuwon Jati’s high quality investment properties portfolio comprising mostly retail malls provides a stable and recurring income, mitigating the volatility in cash flow from its cyclical property development business,” said Poh.
In the first quarter of 2017, Pakuwon Jati booked Rp 654 billion in marketing sales, which Moody’s said put Pakuwon Jati on track to meet its sales target of Rp 2.7 trillion this year. (mrc/ags)
