Sinarmas Land H2 profit more than trebles to S$216.1 million amid property boom
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PROPERTY developer Sinarmas Land on Monday (Feb 27) reported earnings of S$216.1 million for the second half of FY2022, more than triple its net profit of S$60.1 million in the corresponding period for FY2021.
This took the group’s full-year earnings to a record-high of S$343.6 million versus S$145.7 million in FY2021.
Revenue for the full year also rose 48.8 per cent to another high of S$1.3 billion. Revenue for H2 was also up 54 per cent to S$824.8 million from S$535.7 million.
The group said the higher revenue for FY2022 was mainly driven by higher sales of commercial and industrial land parcels in BSD City and Kota Deltamas, Indonesia, as well as higher revenue recognised from residential units and commercial shophouses.
The board of directors at Sinarmas Land has proposed a first and final cash dividend of S$0.00138 per ordinary share. Subject to shareholders’ approval at the annual general meeting on Apr 24, the dividend will be paid out on Jun 27. The record date for the dividend is 5 pm on Jun 19.
Cost of sales for H2 was up 8 per cent to S$246.9 million, while gross profit rose 88.2 per cent to S$577.9 million.
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For FY2022, the group said its recurring income rose 32.5 per cent year on year to S$153.4 million, driven by higher hospitality and commercial office rental income.
Following the reopening of international borders and an influx of travellers, Sinarmas Land said its hospitality business has witnessed an improvement in revenue and occupancy.
Likewise, rental income from the Indonesia division improved mainly due to improved occupancy and higher average rental rate, as well as the inclusion of rental income generated from the newly opened AEON Mall Southgate in Jakarta.
Rental income from the UK property group also improved, deriving from its recently acquired 32-50 Strand building and the rental income increases arising from rent reviews for Alphabeta Building.
In the financial year, the group recorded a share of loss from joint ventures of S$28.6 million due to a S$58.6 million reversal of unrealised gain from the sale of land from the company’s subsidiaries to joint ventures in its Indonesia division.
Sinarmas Land also booked an exceptional gain of S$87.7 million from the disposal of a UK subsidiary, Horseferry Property Limited, which owned an investment building located in Victoria, Central London.
Margaretha Widjaja, executive director of Sinarmas Land, noted that Indonesia was able to “buck” headwinds-like supply chain disruptions and inflation with a record gross domestic product (GDP) growth of 5.31 per cent in 2022.
“Being a key commodity exporter, Indonesia benefited from (the) global commodity boom brought by the aftermath of the Russia-Ukraine war and a more stabilised rupiah. The lifting of Covid-19 restrictions also helped increase domestic household consumption,” said Widjaja.
“In 2023, the group will continue to seek collaboration opportunities with strong regional partners, focusing on acquisition opportunities, asset enhancements, driving rental reversions for better yields and riding on our track record of delivering sustainable profits.”
Shares of Sinarmas Land fell 1.1 per cent or S$0.002 to close at S$0.178 on Monday before the results announcement.
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