Jakarta (28/04) – The national property developer, PT Intiland Development Tbk (Intiland), reported its financial performance for the first quarter of the year.
Based on the quarterly reports ended on March 31, 2017 and March 31, 2016, the Company booked operating revenues of Rp398.7 billion, a 32.3-percent drop from Rp588.7 billion the Company gained in the same period in 2016.
Intiland’s Capital and Investment executive director, Archied Noto Pradono said the performance was the impact of the weakening national property market in the last two years. Yet, outside the Rp398.7 billion revenues booked in the first quarter of 2017, Archie said there were unrecognized operating revenues of Rp1.3 trillion from the occurring sales.
“There are additional revenues Rp1.3 trillion set to be recorded in 2017, coming from the occurring sales. Next, the Company will focus on the sales of inventory to boost the 2017 revenues,” he added. The sales of the Company’s inventory come from Serenia Hills, Magnolia Residence, 1Park Avenue, Regatta, Graha Golf, Spazio Tower, Praxis, The Rosebay, and Ngoro Industrial Park.
Based on the segments, the biggest contributor to the first quarter’s operating revenues is mixed-use & high rise development with Rp158.6 billion or 40 percent of the total revenues. The next big contributor is property investment segment, which booked Rp100.7 billion or 25 percent of the total revenues. This segment is a source of recurring income for Intiland, comprising lease of office space, retail space, Standard Factory Building or SFB, and the management of sports club and facilities.
“The revenue from property investment segment rose 41 percent from the same period last year. We want to boost the performance from segment further because it provides operational stability and long term growth to the Company,” said Archied.
The Company is currently working on several mixed use & high-rise development projects, including Praxis and Spazio Tower in Surabaya. Once completed and going into operation, both projects are projected to provide significant contribution to the Company’s recurring income in the future.
Aside from the two segments, industrial estate segment contributed Rp91 billion or 23 percent of the total revenues. Landed residential development segment contributed Rp48.3 billion or 12 percent to the total operating revenues in the first quarter of 2017.
Based on the types of operating revenues, the development income has remained the principle contributor with Rp298 billion or 75 percent of the total revenues. Recurring income, coming from property investment segment, contributed Rp100.7 billion or 25 percent to the total revenues. Meanwhile, the Company’s operating profit is recorded at Rp58.6 billion, and net profit reached Rp19.7 billion.
In this period, the Company also managed to reduce its total liabilities from Rp4.4 trillion to Rp3.9 trillion. The Company managed to do this following the joint venture agreement between Intiland and GIC, an investment agency owned by the Singaporean government, to develop South Quarter project. The investment from the Intiland’s counterpart in this joint venture is used to reduce the liabilities borne by PT Putra Sinar Permaja, a subsidiary of Intiland tasked with developing South Quarter.***