SMRA - Preparing capex IDR700 bn

Summarecon Agung Tbk (SMRA) is preparing a capex of IDR700 bn in 2023. The plan is to use the capex to acquire new land and develop new projects. Up to the 1Q23, the actual use of capex had reached IDR300 bn. The developer currently works on two mall projects namely Summarecon Mall Bandung and Summarecon Villaggio Jakarta Luxury Outlet (SVJLO) in Summarecon Emerald Karawang, which expected to open in 4Q23. Comment : Capex play very important role for developer. New two malls development will add fresh recurring drivers and thus will supports SMRA’s overall earnings. Additionally we expect Summarecon Bandung will be commercially operated next year and likely to record more than 70% of occupance rate with manageable NLA as well as an inched up rental rate on the back of normalize movement restrictions.