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Office rentals in prime locations as primary recurring driver. In 3Q25, MKPI’s recurring income rose 3.4% YoY to IDR 500bn, driven primarily by office rental revenue which increased 9.1% YoY on the back of sustained demand for office space in prime locations. Hotel revenue climbed to IDR 68bn (+6.5% YoY; +10.3% QoQ) thanks to higher occupancy rates, while shopping mall rentals remained MKPI’s largest contributor, though growth was more modest at IDR 321bn (+0.9% YoY; +0.8% QoQ) amid slower macroeconomic conditions. On profitability, gross margins from recurring assets improved across all segments—shopping malls rose to 67.3% (3Q24: 65.3%), offices to 43.9% (3Q24: 36.8%), and hotels to 15.6% (3Q24: 14.5%), reflecting better cost control and asset utilization.
In line 9M25 net profit up +12.6% YoY on solid recurring margins. MKPI’s consolidated 3Q25 revenue reached IDR 609bn (+0.9% YoY; +1.1% QoQ) with shopping mall rentals (+0.9% YoY) as key contributor. On the real estate side, land and building sales surged 141.4% YoY to IDR 20bn; however, this segment only accounted for 3.3% of total 3Q25 revenues, significantly below contributions from shopping malls (52.7%), offices (11.7%), and hotels (11.2%). At the bottom line, MKPI recorded net profit of IDR 293bn (+37.4% YoY), supported by improved recurring margins. Cumulatively, 9M25 revenue grew +2.4% YoY to IDR 1.8tn, while gross profit and operating profit each increased +5.7% YoY to IDR 990bn and IDR 865bn, respectively. Net profit rose +12.6% YoY to IDR 773bn, achieving 68% of our FY25 forecast (vs. 3-year average realization of 71%), broadly in line with our expectation.
BUY with TP of IDR 32,000 (+31% upside) on 50% discount to RNAV and sector highest ROAA. We reiterate our BUY rating on MKPI with TP of IDR 32,000, based on reduced RNAV discount from 62% to 50%. The narrower discount reflects MKPI’s limited exposure to interest rate risk, supported by its net cash position, relatively low reliance on development revenue (9M25: 19.4%), and sector-leading ROAA. We believe the company’s strong recurring income base and prudent balance sheet management provide solid positioning amid the current volatile macro backdrop. Key downside risks include slower-than-expected rental rate growth and lower occupancy levels.
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
