Sinarmas Land posts 78.7% surge in Q2 profit

SINARMAS Land Limited reported on Monday a 78.7 per cent surge in net profit for the second quarter ended June 30 to S$63 million as it clocked higher revenue and better operating performance from its Indonesia division.

Revenue jumped 34.3 per cent to S$299.3 million during the period, thanks to stronger sales of land parcels, more residential units handed over to homebuyers as well as increased revenue recognition from apartments in BSD City, Indonesia.

A reversal of unrealised gain of S$42.7 million, representing the group's portion for gain on sales of land parcel to a joint venture in the current period, resulted in a loss of S$36.6 million in share of results of joint ventures for the first half.

For the first six months, net profit leapt 96.6 per cent from a year ago to S$100.2 million and revenue grew 33.2 per cent to S$536.4 million.

Margaretha Widjaja, group executive director and vice-chairman of the Indonesia division, said that while prolonged periods of lacklustre economic performance continue to take a toll on Indonesia's property sector, the group has adopted a defensive stance to focus on achieving its marketing sales target and ensuring timely handing over of completed units.

"Confident on the long-term growth potential of the property sector, the group will embark on land sales and strategic alliances to accelerate future growth, while focusing strategically on increasing recurring income contribution through development and acquisition of commercial properties," she said.

In June, Sinarmas Land further expanded its international foothold into the UK with the acquisition of commercial building at 33 Horseferry Road for £188.6 million (S$333.14 million). Combined with earlier UK acquisitions, the group currently owns and manages assets in excess of S$1 billion, which will strengthen its future recurring income and international real estate portfolio.

"Going forward, the group will continue to actively pursue investment opportunities in London, Europe and other global cities to boost recurring income from its international division," Ms Widjaja said.