Sinarmas Land's Q2 net profit up 44%, while revenue dips

PROPERTY developer Sinarmas Land managed to stay in the black for its fiscal second quarter, despite recording lower sales that period.

Its net profit attributable to shareholders increased 44.4 per cent to S$35.3 million for the three months ended June 30, 2016. When taking in net profit attributable to non-controlling interests, however, Sinarmas Land's total net profit dipped 1.2 per cent to S$71.4 million for the quarter.

For the half year, its net profit attributable to shareholders was down 51.1 per cent to S$51.0 million.

Sinarmas Land's revenue was down 4.4 per cent to S$222.8 million for the June quarter.

For the half year, its revenue was down 22.3 per cent to S$402.7 million. The group said this was due mainly to lower sales of land for commercial and industrial purposes in Indonesia, and to lower number of residential units handed over to buyers in BSD City, an urban planning scheme in Indonesia.

Sinarmas Land added that this decrease was partially offset by leasing income from a newly acquired Alphabeta building in London, as well as higher leasing income from its investment properties in Indonesia due to better average rental rates.

Looking forward, the group says it expects the operating environment in Indonesia to remain challenging for the rest of the year, while its properties in the United Kingdom will be affected by the devaluation of the British pound.

Sinarmas Land shares ended Thursday S$0.02 up at S$0.50.