Jakarta, (30/03) – The national property developer, PT Intiland Development Tbk (Intiland), managed to record an increase in the company’s revenue for the fiscal year of 2011. The company booked an income of IDR939.2 billion—an 11 percent increase compared to that of 2010, which reached IDR842.7 billion.
Intiland’s Director of Capital and Investment Management, Archied Notopradono, said that the company’s operational performance showed an improvement in 2011. The company succeeded in implementing several key strategies which have led to continuous business growth.
“The company’s strategy for 2011 was quick growth. We succeeded in launching several new projects of housing, mixed-use, industrial zone and hotel chain. Some projects have already significantly contributed to the company’s income,” he added.
He said that the increase in the income was especially due to the new projects’ marketing, which contributed as much as 53.4 percent. The projects are 1Park Residences apartment, Ngoro Industrial Park 2, and Graha Natura housing estate in Surabaya.
The biggest contribution came from mixed-use segment, amounting to IDR415.9 billion or 44.3 percent of the revenue. The second biggest contributor was housing sector with IDR248.4 billion or 26.4 percent of the revenue, followed by industrial area with IDR146.2 billion or 15.6 percent of the revenue.
“Contribution from recurring income continued to increase .Up to now it has not been too significant, only about 12.9 percent, coming from lease of office space, sports facilities and hotels,” Archied revealed.
Yet, even though there was an increase in the company’s income, the company experienced a decrease in profitability compared to that of 2010. While Intiland booked IDR 262.2 billion operating profit in 2010, the company’s operating profit in 2011 was recorded at IDR187.6 billion.
The decrease in the operating profit is due to the increase in cost of goods sold and other strains, which was recorded at IDR 578.3 billion or 32.5 percent. The increase in costs is the consequence of the increase in fund allocations for the development of the new projects.
“In 2011 we executed and launched many new projects, and the fruit of these endeavors is not yet apparent in the financial statement of 2011. Yet, for the future along with the construction phase and marketing activities, the company will feel the direct effect of increase in income and profit,” he asserted.
Intiland’s net income experienced a drop from IDR355.1 billion in 2010 to IDR140 billion in 2011. The decrease in profit is due to the fact that the company in2010 managed to book a high increase in net income from the sales of long-term investment. In 2011, Intiland’s financial performance was purely the results of business operations and the company did not record any profit from the sales of long-term investment and from divestment of fixed assets.
Quick Growth
At present, Intiland is one of the country’s developers with the most complete product portfolio. The company’s main business line comprises four (4) segments: The developments of housing estates, mixed-use and high-rise buildings, hotels and industrial zones.
According to Archied, the strategy of diversifying product segmentation proves beneficial as the company can maintain the performance, manage risks and have the opportunities to improve the company’s business scale in a short period of time. With diverse product variants, the company will be able to keep the balance of its business performances.
This year Intiland will start several new projects in each business segment. Some of the projects which the company is ready to launch are big-scale projects so that in the long run they will give significant positive impact on the growth of Intiland’s operational and financial performances.
“The direction of the business growth will be that of a quick and substantial one. We launch many new projects which will help strengthen our business foundation and our continuous growth. Besides from the sales of property units, we also increase the portion of our recurring income through the expansion of our Whiz Hotel chain and the development of South Quarter business hub in South Jakarta,” he continued.
In housing sector, the company is set to launch two new projects: Serenia Hills in Lebak Bulus, South Jakarta and Graha Natura in Surabaya. Serenia Hills is a housing complex built on an area of 10 hectares targeting middle to upper class threshold. Intiland started the marketing of the first phase of the development at the end of 2011. At present, the company has sold more than 80 percent of the available units.
Graha Natura is a new housing to replace Graha Famili project whose area has begun to become very limited. Launched by Intiland in the beginning of 2012, Graha Natura is in its first phase of the development covering an area of 25 hectares from the total area of 80 hectares.
Since 2010 the company has followed a strategy of diverting the development focus from old projects to the new ones. In mixed-use and high-rise segment, the company has prepared at least five new projects in Jakarta and Surabaya. They are South Quarter business hub in South Jakarta, 1Park Residences phase II, Aeropolis Residence in Cengkareng Tangerang, Spazio and Sumatra36 apartment in Surabaya.
In hotel line, this year Intiland will start the development of at least eight (8) hotels in the cities of Jakarta, Bogor, Palangkaraya, Manado, Malang, Makasar and in Bali. Meanwhile, the company is targeting the opening of five new hotels, three of them are in Jakarta and the other two are in Balikpapan and Bali, respectively. ***