SINGAPORE (Feb 24): Sinarmas Land reported 4Q16 earnings of $46.5 million, reversing from its loss of $7.8 million a year ago.
The turnaround was due to higher revenue, higher share of results from associated companies, and the absence of a one-off exceptional loss.
Revenue for the quarter rose 33.4% to $329.8 million due to higher handover of completed residential units in Indonesia’s BSD City and industrial land sales from Kota Deltamas.
As such, the group’s 4Q gross profit rose 28.0% to $205.2 million accordingly.
For the full year, the group’s earnings declined 19.7% to $114.9 million from $143.1 million in FY15.
Despite the dip in FY16 revenue, recurring rental income for the year jumped 14.8% from $130.2 million to $149.4 million, lifted mainly by the UK property division following contributions from Alphabeta building acquired in October 2015, as well as higher rental income from the group’s Indonesia investment properties.
A lower net foreign exchange loss of $5 million was also recorded in FY16, compared to the higher foreign exchange loss in the previous year due to realised loss arising from settlement of certain Japanese Yen denominated receivables in FY15.
As at Dec 31, the group’s had a net debt to equity ratio of 12.8%, total assets of $6,079.8 million, as well as cash and cash equivalents amounting to $867.3 million.
“Going forward, the group shall continue to focus on the middle-income consumers and emerging white-collar workers with better purchasing power, as well as enhancing the pace of property development through joint ventures and land sales,” comments Margaretha Widjaja, the executive director and vice chairman of SML’s Indonesia Division.
“The group continues to seek opportunities to invest into investment properties, both in Indonesia and internationally, as part of its earnings and geographical diversification strategy.”
Shares of Sinarmas Land closed 1 cent lower at 46 cents on Friday.
