Property developer profit news

The property unit of Sinar Mas Land, Bumi Serpong Damai (BSD), reported a 73% increase in profit for the first six months of this year, owing to a stake purchase in property developer, Plaza Indonesia Realty.

According to the company’s filling to the Indonesia Stock Exchange (IDX), net income increased to Rp2.6trillion ($226million) within the January to June period, from Rp1.5trillion last year.

In a different statement, BSD owed the rapid profit growth to its purchase of 34.22% of Plaza Indonesia, during April, making it the major shareholder. The company runs the Plaza Indonesia shopping mall, Central Jakarta.

However, BSD’s revenue depleted by 17% to Rp2.4trillion.

Meanwhile, other property developer, Pakuwon Jati’s net income increased by 3% to Rp905.7billion. Revenue grew by 13% to Rp1.8trillion.

Based in Suabaya, Pakuwon aims for its revenue to increase by between 10 and 20% this year. Revenue reached Rp3.03trillion during 2013.

Developer reports profit increase, thanks to growing demand for homes

Modernland Realty property developer has reported a substantial 21% increase in profit during the first quarter of this year, owing to a growing demand for homes.

The property developer company’s net income for the first three months of this year was Rp390.2billion ($33.6million), comparable with Rp323billion during the same period last year, as its revenue rose 34% to Rp790billion.

The Tangerang based property developer, Modernland’s portfolio includes a golf course in Tangerang, townships, as well as residential developments within and surrounding Jakarta, plus in Sukabumi, West Java. The company also owns an industrial estate in Serang, Banten.

Modernland’s property sales rose by 34% to Rp761billion during the first quarter, accounting for over 95% of the total revenue of the company.

Revenue from rental fees accumulated to Rp15.6billion, up 49% from the same period last year. The company’s club houses and golf course generated Rp12.5billion, growing almost 50%.

The company has allotted Rp1.3trillion for capital outflow this year, utilised mainly to purchase approximately 1,000 hectares of Jakarta land.

A representative from Modernland, previously announced plans to set aside 400 hectares for an industrial estate with the remainder for other East Jakartan developments.

Modernland has been developing its portfolio in East Jakarta since last year, when the company paid Rp2.29trillion for a 51% stake in Mitra Sindo Makmur (MSM) and Mitra Sindo Sukses (MSS). They jointly hold a 51% stake in Jakarta Garden City, a 270hectare commercial and residential project in Cakung, East Jakarta. Modernland formerly held a 51% in the project.

Modernland also wrapped a deal with a local branch of Japanese retail developer, AEON Mall Indonesia, purchasing 8.5hectares of commercial land in Jakarta Garden City for $45.67million.

As reported by Cuncun, the company expects marketing sales of properties still under construction, to hit Rp4trillion this year, in comparison to the estimated Rp2.7trillion last year.

Commercial Property stocks have gained highest profit this year

The Indonesia Stock Exchange have revealed that investors who concentrated on property, infrastructure and banking stocks have gained the highest profit so far this year, standing out as Indonesia’s top performers. All sectoral indices contained within the benchmark stock index of Indonesia, referred to as the Jakarta Composite Index (IHSG) have also shown good performance. Indonesia's IHSG has grown by 16.14% during 1^st January to 26^th May, this year.

The property sectoral index of Indonesia grew by 28.15% between 1^st January and 26^th May, followed by the financial (up 23.62%) and infrastructure (up 17.99%) sectors. With the exception of healthy general economic growth, the property and infrastructure sectors gained a boost from the political agendas of two presidential candidates – Prabowo Subianto and Joko "Jokowi" Widodo. Both candidates target accelerated infrastructure growth, with improved quantity and quality of infrastructure, whereby investments in real estate and property become more attractive.

Indonesia's Matahari Department Store gains profit rise of half

One of Indonesia’s major department store operators, the Matahari Department Store, has revealed their profit has risen by half during the first quarter of higher sales, owing to higher spending amongst middle income households.

This is as net income between January and March rose to Rp123.1billion ($11million) - an increase from Rp82.2billion during the same quarter last year. Same store sales (which have been established for at least a year), rose by 9.3%.

The Matahari Department Store claims they continue to be positive across trading for the rest year, as they experience continuing strength in top line growth motivated by the increased disposable income in their targeted customer group.

Matahari owns 125 stores across 61 cities of Indonesia.

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News just in Indonesia

Lippo Karawaci has reported a 35% rise for the first quarter net profit, thanks to its healthcare and residential units.

The largest listed property firm revealed a net profit of 339 billion rupiah {$29.4 million} for the first three months of the year up to March, an increase of 251 billion from the same period during the previous year.

The company’s revenues for its urban and residential development shot up to 53%, as the healthcare unit experienced a 29% increase.

Lippo Karawaci’s properties include residences, hotels, shopping malls and hospitals. The company has revealed that now is a good time to participate in commercial property, so visit www.commercialpeople.co.id soon – we advertise both commercial and residential, with something for everyone.

Developer Pakuwon Jati Sees Profit Growth of 51% for 2013

Jakarta. Pakuwon Jati, a property developer, saw a 51.3 percent increase in profit last year on rising revenue.

Net income at Pakuwon rose to Rp 1.13 trillion ($99.3 million) last year from Rp 748 billion in the previous year. Revenue increased to Rp 3.03 trillion from Rp 2.16 trillion in a year earlier, the company said in a statement released in Jakarta on Monday.

Irene Tedja, head of investor relations at Pakuwon, said that development revenue — income from the sales of apartments and residential units — accounted for 53 percent to its total revenue.

The development revenue stood at Rp 1.59 trillion last year, Irene said adding that it had grown 30.6 percent from 2012.

The company benefitted from apartment sales at its Education City apartment block and landed residential unit sales at the Pakuwon City residential area, both located in Surabaya, East Java.

Irene said the rest of the company’s total revenue came from its recurring revenue — or income coming from the rental fees of malls, office towers, and hotels.

The company raked in Rp 1.43 trillion in recurring revenue last year from Rp 943 billion in the previous year.

Irene said the recurring revenue growth was supported by rent fees from its Kota Kasablanka mall in South Jakarta, Gandaria City super block in South Jakarta and the Tunjungan City super block in Surabaya, East Java.

Pakuwon expects to receive additional revenue from the expansion project of Tunjungan City, which is currently under construction, Irene said.

The expansion project includes two retail malls, two condominium towers, and a four-star hotel.

Pakuwon plans to build a condominium and office tower at the Kota Kasablanka super block. The Pakuwon City residential area will see the addition of a new landed residential cluster at this year.

Pakuwon Jati shares closed unchanged at Rp 354 on the Indonesia stock Exchange (IDX) on Monday.

Source: www.thejakartaglobe.com