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Jakarta Post

Property sector hardest hit by pandemic: Moody’s

  • Riska Rahman

    The Jakarta Post

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Jakarta   /   Mon, September 14, 2020   /  08:59 am
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A family window-shops in late June while wearing masks at a shopping mall in South Jakarta. Shopping malls started reopening in early June under the eased restrictions of the 'new normal' phase, but the number of COVID-19 cases nationwide has jumped significantly, even as Indonesia sees a decline in the number of deaths.(JP/Arief Suhardiman)

Property is expected to be the sector hardest hit by COVID-19, as the health crisis will continue to limit demand, credit rating agency Moody’s Investors Service has forecast. Moody’s vice president and senior credit officer, Jacintha Poh, said on Thursday that the agency projected that the aggregated earnings of property companies would decline by 40 percent in 2020. The figure is double the agency’s overall earnings projection for all business sectors, which is expected to fall by 20 percent this year. Property companies generating a substantial proportion of earnings from the retail and hospitality business will feel the deepest pain, Poh said. “Companies like PT Pakuwon Jati and Lippo Malls Indonesia Retail Trust [LMIRT] will suffer the biggest decline in earnings due to mall closures and rental rebates,” she said during a webinar. Publicl...