Intiland Books Rp1.14 Trillion in Revenue

Jakarta (27/07) – PT Intiland Development Tbk succeeded in improving its business performance throughout the first semester of 2016, with all business indicators showing positive growth. 

Intiland has booked revenue of Rp1.13 trillion, according to the company’s midyear financial report. This shows an increase of Rp136.78 billion or 13.77 percent from the same period in the previous year, in which the company reported Rp993.43 billion in revenue.

Executive Director of Capital and Investment, Archied Noto Pradono said the revenue increase was due to income recognition following good report in the progress of the development and completion of the company’s residential projects.

“The increase is notably coming from income recognition from Serenia Hills Phase II project; we have handed over the units to their owners. Another contributing factor is the progress of 1Park Avenue apartment construction,” Archied further said.
Aside from maintaining good sales performance, the company also manages to improve profitability. Intiland’s gross profit is recorded at Rp466.71 billion, or showing an increase of 17.51 percent, while the operating profit is recorded at Rp181.46 billion, up 27 percent from the same period last year.
The company also booked net profit of Rp150.65 billion. This shows an increase of 16.06 percent from the company’s net profit in the first semester of 2015. The increase in net profit is mainly due to the company’s increase in income.

Archied explained that based on the types, the contribution from the development income reached Rp985.03 billion or 87 percent of the total revenue. The recurring income contributed Rp145.19 billion or 13 percent of the total revenue.
The contribution from the recurring income is higher than that of the first semester of 2015, which was recorded at 11 percent. The increase is driven by the higher income gained from office lease and contributions from sports and retail facilities.
“Our projection is that recurring income can contribute up to 20 percent in line with the completion of our office and retail projects, such as South Quarter in Jakarta, and Praxis and Spazio Tower in Surabaya,” Archied explained.
Seen from the segmentations, the mixed-use and high-rise segment remains the major contributor with Rp625.14 billion or 55 percent of the total revenue. The next big contributor is residential development segment which contributed Rp359.89 billion or 32 percent. The rest, which is Rp145.19 billion or 13 percent of the total, came from property investment segment comprising lease of office space and industrial area, the management of facilities and infrastructures, including sports facilities, golf course and retail facilities.
The company’s management is confident that the national property industry is on the road of recovery. The investment climate and the people’s interest in purchasing property are showing positive signal, further supported by the government’s issuing several pro-market policies, such as lower interest rate, new regulations on loan to value, and tax amnesty policy.
Intiland sees that the condition of the property industry is more conducive than before. The tax amnesty policy is seen to be able to act as a catalyst for the growth of the property sector and investment climate. This year, the company is launching several products, including The Rosebay, a vertical residential project located in Graha Famili residential complex in Surabaya. The company has also started the second phase of development of Graha Natura, Surabaya. Intiland has a plan to launch more big scale mixed-use and high-rise projects in the business centers in Jakarta and Surabaya.***