Intiland to Distribute Rp51.8 Billion Dividend
Jakarta, (18/05) – The property developer, PT Intiland Development Tbk is to pay dividends with the value of Rp51.8 billion or Rp5 per share.
The dividend is equivalent to 17.3 percent of the total net profit worth Rp298.9 billion earned in 2016.
The shareholders approved the plan to pay the dividends in General Meeting of Shareholders held in Jakarta on May 18, 2017. The shareholders also approved the Company’s plans as noted in the minutes of the Annual General Meeting of Shareholders.
The shareholders approved the Company’s plan to utilize the net profit worth Rp245 billion as retained earnings and Rp2 billion as mandatory reserve. The Annual General Meeting of Shareholders also accepted and approved the Company’s Annual Report, Annual Financial Statement, balance, and the Company’s profit-loss statement for the financial year ended December 31, 2016.
Intiland’s executive director of Capital and Investment, Archied Noto Pradono said the year 2016 had been a trying year for the national property sector, including for Intiland. The management, however, remain committed to consistently make use of the Company’s comparative advantages to weather the storm.
“The property industry faced an uphill battle throughout the year due to a number of factors. This condition persisted in the first four months of 2017. We continually evaluate and execute our strategies to improve performance,” Archied said.
Because of the soft market, in 2016 the Company had to delay the launch of two big-scale projects in Jakarta and in Surabaya. The new plan for both projects is to launch them in second quarter of 2017.
The delay affected the Company’s 2016 marketing sales and financial performance. The revenue from marketing sales is reported to reach Rp1.63 trillion, lower than in 2015 which reached Rp1.9 trillion.
Intiland’s operating income was Rp2.28 trillion, or rose 3.4 percent compared to that in 2015 which was recorded at Rp2.2 trillion. the income from operating profit reached Rp404.3 billion or 11.6 percent lower, while net profit reached Rp298.9 billion or 25.4 percent lower than that in the previous year. The decline in profit is especially due to the rising operating expenses and interest expense.
Archied said the weakening property market continued in the first three months of this year. The Company recorded operating income of Rp398.7 billion or 32.3 percent lower than the operating income received in the first quarter of 2016. The Company also reported operating income of Rp58.6 billion and net profit of Rp19.7 billion.
“There is still operating income we haven’t reported worth Rp1.3 trillion from sales that already occurred. This will be reported in the Financial Statement for the period ended December 31, 2017,” Archied explained.
The Company has taken several strategic steps to improve its performance. From sales, Intiland focuses on efforts to market the inventory of each project. Aside from launching two new projects this year, the Company is continuing with the current projects, including the mixed-use office project South Quarter Phase II, Graha Golf apartment, and Serenia Hills residential complex.
“This year, our target is that the marketing sales can rise between 35 and 40 percent. The launch of the two new projects will be the driving force behind the sales, besides the sales of our industrial estate in April with the value of Rp386 billion,” he added.
The Company remains confident that the property industry will rebound this year. Aside from developing projects, Intiland is committed to improving its recurring income segment, with integrated office complex South Quarter and the completion of its office and retail mixed-use projects, such as Spazio Tower and Praxis in Surabaya.
This segment is proven to provide stability in operations and in performance. Recurring income in the first quarter of 2017 contributed Rp100.7 billion to the Company’s income, or rising 41 percent from the same period in 2015.***