Sinarmas Land posts 136.6% surge in Q1 profit

SINARMAS Land on Monday reported a 136.6 per cent surge in net profit for the fiscal first quarter ended March 31 to S$37.2 million on the back of higher revenue from its Indonesia division and better operating performance from higher sales of residential units in its joint-venture developments.

Total revenue for the first quarter rose 31.8 per cent to S$237.1 million due to an increase of residential units handed over to homebuyers in BSD City, which offset the lower industrial land sales in Kota Deltamas.

Despite a dip in rental contribution from the UK division due to translation effect of a weakened British pound, the group's recurring income climbed 2.9 per cent to S$38.7 million, thanks to stronger rental income from the Indonesia division.

Group executive director and vice-chairman of the Indonesia division Margaretha Widjaja noted that extended periods of lacklustre economic performance in Indonesia have affected its property market.

But the group is now expecting stronger economic recovery following the government's larger infrastructure spending, and increased direct investments. Purchasing power is also set to improve with the higher commodity prices and post-tax amnesty programme, she said.

"The group is well positioned to take advantage of the property sector recovery through joint ventures and land sales, as well as focusing strategically on increasing recurring income contribution through development and acquisition of commercial properties," Ms Widjaja added. "Outside Indonesia, the group is actively pursuing investment opportunities to boost recurring income from its international division as political stability returns."