Ciputra Property 2014

Industry and household expenditure

In between 2010 – 2014 the compound annual growth of real estate industry was more than 6.6 % (at 2010 constant market price). The industry is still growing because the demand of residence, shopping center and apartment may be higher than those supplies. In 2014 several companies in real estate and property were growing in double digit. They were Lippo Karawaci, Greenwood, Ciputra property and etc.

However, there are few companies which experienced a decline in its revenue at 2014 such as Bakrieland and development.

In addition the household expenditure of restaurant and hotel in 2014 seemed advancing in between 2010-2014, the CAGR of the period was approximately 6 %. Household may advance its expenditure for spending more in the future due to the increase of income per capita.

Company Analysis

Ciputra property is a subsidiary of Ciputra development which concerns in shopping center lease segment. As a lessor, Ciputra property had more than IDR 4.148 trillion as its aggregate amount of future minimum lease payments for each period under operating lease in 2014. Term of agreement generally is set up for range of 1-20 years. The lessee has to pay 10% - 50 % of total rental fee to the lessor .

Ciputra development Tbk owns 58 % of company’s total share. Ciputra group was founded by Ir. Ciputra, an Indonesian tycoon who has been operating in property sector more than two decades.

As a lessor the company has good expertise in find suitable place for establishment of shopping center or mall. For the future development the company may decide to invest in Bali and Jakarta.

Based on its financial report, the land for development of the company was located in two locations in indonesia, those were at Bali and at Jakarta which were 377 thousand square meter and 14.7 thousand square meter.

In 2014 the biggest revenue of the company was achieved by residence segment that was amounting to IDR 553 billion in 2014 or more than 33 % of total income. The second was contributed by shopping center lease segment with more than 30 % of total revenue. Segment of shopping center lease was able to give high gross profit; its gross margin was 63 % in 2014, it was higher than residence segment in same period.

Ciputra property has many agreements with reputable brand in hospitality and mall such as rafles, Indo pacific Sheraton, Swiss Bell Hotel, AIMI, Star wood asia and etc.