Intiland Books Rp187.6 Billion Net Profit
Intiland announces the financial performance for the first half of 2017
Jakarta (26/07) – The national property developer, PT Intiland Development Tbk (Intiland) enjoyed a bullish performance as the company reported a significant profitable performance in the first semester of 2017.
Based on the consolidated financial report for the period ending on June 30, 2017, the company booked net profit of Rp187.6 billion, a significant increase of 24.6 percent compared to the same period in 2016, in which the company recorded a net profit of Rp150.6 billion.
Intiland’s executive director of Capital Management and Investment, Archied Noto Pradono explained that operating revenues drove the increase. The company booked operating revenues of Rp1.3 trillion, an increase of 18.5 percent compared to the Rp1.1 trillion booked in the same period in 2016.
“The increase in operating revenues is significantly helped by revenue recognition from the sales of Ngoro Industrial Park in Mojokerto and increase from the company’s recurring income,” said Archied.
Archied further explained that based on the development segments, industrial estate is the biggest contributor to the company’s operating revenues, contributing Rp551 billion or 41 percent of the total revenues. This is from the sales of land in Ngoro Industrial Park and the sales of Aeropolis Technopark warehouse in Aeropolis project in Tangerang.
The mixed-use and high-rise development segment contributed Rp316 billion or 24 percent of the total revenues. The sales of 1Park Avenue apartment project is the biggest contributor in this segment.
The next big contributor is investment properties segment with Rp252.3 billion or 19 percent of the total revenue. This segment is also the source of the company’s recurring income, coming from the management of golf course and sports club, office and retail space rental, and warehouse. This segment recorded a jump of 73.8 percent from the same period in 2016, attributed notably to the contribution from the rental of South Quarter office building in Jakarta.
Residential development segment contributed Rp220 billion or 16 percent of the total revenues. Serenia Hills residential project contributed the biggest to this segment.
Based on the types, development income recorded at Rp1.09 trillion or 81 percent of the total income. The other 19 percent comes from recurring income, which reaches Rp252.3 billion.
The rise in the operating revenues directly affects Intiland’s gross profit and operating profit. In the first semester of the year, the company booked gross profit of Rp582 billion, an increase of 24.7 percent and operating profit of Rp295.4 billion, or an increase of 62.8 percent.
Archied said the condition of the property market generally remained bearish in the first six months of 2017. The management hopes that the market will improve in the second semester.
The market needs the people’s purchasing power, interest and confidence to return, thus, encouraging them to invest again in the property sector. The customers, especially in the middle-upper class segment, tend to wait and see.
By the end of June of 2017, the company’s marketing sales reached Rp1.1 trillion or 48 percent of the 2017 target. This showed a 10-percent increase compared to the same period in the previous year.
“We’ll continue to strengthen our sales performance. We plan to do this by focusing on marketing our inventories and with new development in our running projects. As for new projects, we are awaiting the proper momentum and continue to monitor the market,” said Archied.
Based on the company’s business plan, Intiland is preparing several new major development projects. They comprise mixed-use & high-rise projects and are to be located in Jakarta and in Surabaya.*