Siloam is expanding at a breakneck speed, almost all capex is for building 4-5 new hospital per year. They are burning through capital like no tomorrow. No other hospital group, even in sg is going at that kind of speed.
Siloam is doing that to get to thier target of 50% market share for hospital. And the expansion is partly subsidized by Lippo Group. Otherwise they can never achieve the growth they envision.
Current hospital occupancy is still below 50%, because there is too many is added yearly. Only thier older hospitals are profitable.
Lippo have no choice but to rental support Siloam, otherwise they cannot afford to add so many new hospitals every year. Go to siloam website, read their english presentation and you will know better.
Thier stratergy is like Reliance Jio, burning through capital in order to increase market share, and once have enough sizing, the profits will come rolling in.