Intiland Net Income Increases Significantly

Jakarta, (30/10) – The national property developer PT Intiland Development Tbk managed to maintain positive growth in Q3-2014. All indicators for the company’s business and financial performances increased significantly amid a highly challenging condition in the national property industry.

Until the end of Q3-2014, Intiland recorded net income of Rp 300 billion, a jump of 43.5 percent from the same period last year amounting to Rp 209.2 billion. The company’s operating profit reached Rp 436.2 billion, or increased 24 percent.

Intiland’s Capital and Investment Management director, Archied Noto Pradono said the growth in the company’s profitability comes from the increase in operating profit. “The sales result of our superblock and residential development projects spurs the growth in the company’s income.”

The company recorded its income reaching Rp 1.3 trillion or a 24.8 percent increase compared to the same period last year. Residential development segment is the biggest contributor to the company’s income, recording sales of Rp 456.3 billion. The amount is the same as 35 percent of the total income. Next is the superblock development project which contributes Rp 370.8 billion or 28.5 percent, followed by industrial zone with Rp 349.4 billion or 27 percent to the company’s coffer. Meanwhile, property investment segment recorded an income of Rp 123.8 billion or 9.5 percent.

Looking at the contribution each project has recorded, Ngoro Industrial Park comes up on top. The industrial estate located in Mojokerto, East Java, recorded income of Rp 349.4 billion or 27 percent of the total income. Next is the superblock development project, South Quarter with Rp 319.3 billion or 25 percent. Graha Natura residential area in Surabaya contributes Rp 188 billion or 14 percent to the company.

Based on the types, development income is still the biggest contributor with the value of Rp 1.18 trillion or 90. percent of the total income. The other 9.5 percent or Rp 123.8 billion comes from recurring income, or from office buildings, and golf and sport facilities.

“We continue to improve contribution from recurring income in line with the operations of office buildings, one of which is South Quarter in Jakarta whose topping-off ceremony was held in September. South Quarter will be ready for operation and receive tenants next year,” Archied said.

By the end of Q3-2014, Intiland had already launched several new projects. To name a few are Aeropolis Techno Park, warehouse development at Aeropolis near Soekarno-Hatta International airport, and Phase II of Regatta condominium. The company has also already started the development of Spazio Tower in Surabaya.

Sales Revenue

Even though property market is facing a tough challenge in the last six months, Intiland managed to maintain its sales performance. As Q3-2014 came to a close, the company successfully recorded marketing sales of Rp 1.8 trillion. This led the company to reach 64 percent of its 2014 marketing sales target of Rp 2.8 trillion.

“We hope the condition will turn for the better so that the company can achieve its annual marketing sales target,” said Archied.

Being the main contributor for the company’s income, development income was recorded at Rp 1.66 trillion or 92 percent of the total income. The rest, Rp 138 billion, comes from recurring income.

The biggest contribution comes from superblock development products with Rp 796 billion or 44 percent of the total income. Marketing sales income from residential projects reached Rp 757 billion or 42 percent.

“For the future, we will still focus on developing big-scale and long-term projects. This type of development will positively contribute to the company’s performance in the future,” Archied added.

Two projects with the two biggest contributions are  superblock development segment and mixed-use integrated projects, namely Aeropolis with contribution of Rp 358 billion or 20 percent, and South Quarter with Rp 245 billion or 14 percent of the total. Another project with big contribution is Regatta with Rp 289-billion or 16 percent of the total.