JAKARTA, NNC - Property developer Intiland Development (IDX:DILD) has posted operating revenues of IDR2.2 trillion at the end of last year, or slightly lower than IDR2.3 trilion in 2016. The company viewed that the property market in general had not yet fully recovered last year. The national property market still faces a number of challenges, including consumers and investors who tend to wait and see for changes in market conditions.
"Industrial development segment and recurring income are key drivers of the financial performance in 2017. Proceeds from industrial land sales over the past year can be directly booked as operating revenues," said Archied Noto Pradono, Director of Capital and Investment Management at Intiland Development in Jakarta, on Tuesday (03/27).
He explained that the industrial estate development segment generated revenues of IDR550.9 billion. The investment property segment, which is the source of recurring income, contributed IDR528.2 billion or 24 percent of total operating revenues. This significant increase was driven primarily by the growth of revenues contribution from office lease and management of building and area facilities.
The mixed-use & high rise development segment obained operating revenues of IDR703.6 billion, or contributed 31.9 percent. The housing development segment recorded a contribution of IDR420 billion, or 19.1 percent.
Meanwhile, in terms of profitability, Intiland Development posted gross profit of IDR955.7 billion, while its operating income touched IDR344.9 billion. The company's net profit was recorded at IDR297.5 billion, likely to be the same as last year's earnings.
Archied added that facing market conditions in 2018, the company had prepared a number of key strategies to maintain business performance growth. One of them is through the development and launching of new projects this year.
"We will still considering changes in the direction and market conditions in relation to launching the new projects. However, we are confident that the condition will gradually improve, so that enthusiasm in the property market will revive, thus proving conducive for investments," he added.