{"id":15345,"date":"2019-10-28T17:50:37","date_gmt":"2019-10-28T10:50:37","guid":{"rendered":"https:\/\/www.intiland.com\/?p=15345"},"modified":"2023-06-27T14:39:38","modified_gmt":"2023-06-27T07:39:38","slug":"intiland-recorded-operating-revenue-of-rp1-9-trillion","status":"publish","type":"post","link":"https:\/\/www.intiland.com\/en\/intiland-recorded-operating-revenue-of-rp1-9-trillion\/","title":{"rendered":"Intiland Recorded Operating Revenue of Rp1.9 Trillion"},"content":{"rendered":"

Jakarta (10\/28) \u2013 Property developer PT Intiland Development Tbk (Intiland; DILD) reported its financial performance as at 30 September 2019. In the first nine months of this year, the Company posted operating revenues of Rp1.9 trillion, a reduction by 23.4 percent compared to the amount recorded in the same period last year, namely Rp2.4 trillion.<\/span><\/p>\n

 <\/p>\n

Intiland’s Director of Capital Management and Investment, Archied Noto Pradono, explained that the decline in the Company\u2019s business performance was attributable to the changes in the prevailing property market conditions. This year\u2019s growth has been driven more by sales and launching of new residential projects targeting the lower to middle class segment.<\/span><\/p>\n

 <\/p>\n

This condition has affected the Company\u2019s business performance, as most of the Company\u2019s portfolio of products and inventories is in the mixed-use & high rise and residential targeted at the middle- and upper-class market segments.<\/span><\/p>\n

 <\/p>\n

\u201cWe have not launched many new projects this year. Of the several new projects that we launched, almost all were residential products targeting the middle and upper market segments,\u201d Archied said further.<\/span><\/p>\n

 <\/p>\n

Archied explained that so far Intiland\u2019s operating revenues have been supported by four development segments. Apart from the development of mixed-use and high rise, residential, and industrial estates, which are a source of development income for the Company, it also records recurring income from its investments in property in the form of leasing office space, property management, and management of sports facilities, among others.<\/span><\/p>\n

 <\/p>\n

The mixed-use & high-rise development segment recorded the largest contribution to the revenues, amounting to Rp858 billion, or 46.3 percent of the total. The next largest contributor was the residential development segment, amounting to Rp472.2 billion or 25.5 percent of the total.<\/span><\/p>\n

 <\/p>\n

The industrial estate development segment contributed Rp62.4 billion, or 3.4 percent. Meanwhile, the property investment segment, a source of recurring income, booked Rp461.7 billion, or 24.9 percent of the total. Operating revenue from this segment increased 7.2 percent compared to the same period last year.<\/span><\/p>\n

 <\/p>\n

\u201cWe continue our efforts to increase the portion of recurring income in our revenue mix, to make the structure of our operating revenues more ideal. Increasing the contribution from leasing of office space and retail space is a priority, to magnify our operating revenue from recurring income,\u201d Archied said.<\/span><\/p>\n

 <\/p>\n

Based on the source of income, development income amounted to Rp1.39 trillion or 75.1 percent of the total. The remaining Rp461.7 billion or 24.9 percent of the total was derived from recurring income.<\/span><\/p>\n

 <\/p>\n

In terms of profitability performance, the Company recorded a gross profit of Rp645.8 billion, down by 10.1 percent compared to the same period last year. The Company\u2019s operating profit accordingly decreased by 12.9 percent to Rp242.9 billion compared to the same period last year, of Rp278.9 billion.<\/span><\/p>\n

 <\/p>\n

The decline in operating revenues, coupled with an increase in interest expense, resulted in the Company\u2019s weaker net profit performance. Up to the end of the third quarter of this year, the Company posted a net profit of Rp6.5 billion, lower than the same period last year, which was recorded at Rp122.9 billion.<\/span><\/p>\n

 <\/p>\n

Faced with such situation, Intiland management is striving to pursue and improve its business performance for the full year. Sales of ready inventory are the Company\u2019s main focus and priority in increasing operating revenues.<\/span><\/p>\n

 <\/p>\n

\u201cWe have an inventory of products in several projects that are now ready, such as 1Park Avenue, Praxis, Aeropolis apartments, and residential projects. Sales of these products can be immediately acknowledged and recorded as operating income,\u201d Archied said.<\/span><\/p>\n

Future Plans<\/strong><\/span><\/p>\n

In the midst of the changing market conditions, during the first nine months of this year the company\u2019s sales performance did not manage to achieve the target. The Company recorded operating revenues from marketing sales of Rp862 billion, or only 34.5 percent of this year\u2019s target of Rp2.5 trillion.<\/span><\/p>\n

 <\/p>\n

Archied explained that sales from mixed-use & high-rise development segment contributed marketing sales of Rp574 billion. Contributions from the residential area development segment amounted to Rp288 billion. The industrial estate development segment had not recorded any sales until the end of the third quarter of this year.<\/span><\/p>\n

 <\/p>\n

In terms of location, sales from projects in and around Jakarta contributed marketing sales of Rp726 billion, while sales from projects in Surabaya and surrounding areas amounted to Rp136 billion.<\/span><\/p>\n

 <\/p>\n

\u201cCertain factors contributed to our not reaching the marketing sales target, namely the heavy challenges in recording sales in high-rise products for the upper-middle market segment, and this year we have also been more conservative in launching new projects,\u201d Archied explained.<\/span><\/p>\n

 <\/p>\n

Until the end of the third quarter, the Company had launched no more than three new residential developments. The three developments are SQ Res apartment, Pinang Townhouse, and the new Zenith cluster in the Serenia Hills residential area located in Jakarta.<\/span><\/p>\n

 <\/p>\n

The Company\u2019s management is committed to continuing to increase sales to achieve the marketing sales target for the full year. In addition to property sales from ongoing projects, the Company has also received commitment related to the sale of inventories that are considered non-core assets, with a value ranging from Rp375 billion to Rp400 billion.<\/span><\/p>\n

 <\/p>\n

Archied said that these sales commitments came entirely from non-core assets located in Surabaya. This sales transaction will be realized in stages within this year.<\/span><\/p>\n

 <\/p>\n

Facing the near-future challenges in the property sector, the Company remains optimistic that conditions will be better in the next year than in this year. The Company has prepared certain key strategies to anticipate market growth and changes, to boost sales performance.<\/span><\/p>\n

 <\/p>\n

First, the Company will remain focused selling its inventories. Second, the Company continues to develop its ongoing projects. Third, development of new projects will be done with the middle-class segment, a considerably large market segment, as the priority.<\/span><\/p>\n

 <\/p>\n

\u201cWe have prepared several new projects to develop, such as in residential areas, apartments and commercial areas in Jakarta and Surabaya,\u201d Archied mentioned.<\/span><\/p>\n

 <\/p>\n

In terms of residential projects, the Company is preparing two new developments, namely Pinang Residence in South Jakarta and a new residential area in Surabaya. For commercial areas, the Company is preparing the development of SOHO in Surabaya and Poins in South Jakarta.<\/span><\/p>\n

 <\/p>\n

The Company has also prepared new development plans for its ongoing projects, such as the Serenia Hills residential area in South Jakarta and the Talaga Bestari residential area, Tangerang.<\/span><\/p>\n

 <\/p>\n

This expansionary strategy is the Company\u2019s main measure to anticipate the current developments and the apparent recovery in the national property market. The Company remains optimistic that the property market will improve as the national economy expands, investment trends rise, and the national security stabilizes and becomes more conducive to doing business.***<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Jakarta (10\/28) \u2013 Property developer PT Intiland Development Tbk (Intiland; DILD) reported its financial performance as at 30 September 2019.<\/p>\n","protected":false},"author":5,"featured_media":15319,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"inline_featured_image":false,"footnotes":""},"categories":[41],"tags":[],"class_list":["post-15345","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-release"],"_links":{"self":[{"href":"https:\/\/www.intiland.com\/en\/wp-json\/wp\/v2\/posts\/15345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.intiland.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.intiland.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.intiland.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.intiland.com\/en\/wp-json\/wp\/v2\/comments?post=15345"}],"version-history":[{"count":0,"href":"https:\/\/www.intiland.com\/en\/wp-json\/wp\/v2\/posts\/15345\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.intiland.com\/en\/wp-json\/wp\/v2\/media\/15319"}],"wp:attachment":[{"href":"https:\/\/www.intiland.com\/en\/wp-json\/wp\/v2\/media?parent=15345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.intiland.com\/en\/wp-json\/wp\/v2\/categories?post=15345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.intiland.com\/en\/wp-json\/wp\/v2\/tags?post=15345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}