Developers Show Sky-High Growth in 2012 | The Jakarta Post
Property developers have performed on a par with market forecasts predicting skyscraper growth. Comparing recent financial reports of property developers, PT Agung Podomoro Land (APLN), whose projects include upmarket residential estate Green Bay Pluit, remains one of the strongest performers.
In 2012, APLN made IDR4.7 trillion (US$484.1 million) in revenue and Rp 841.3 billion in comprehensive income. The figures represent a 22.6 percent and 22.8 percent year-on-year increase.
Another strong performer is PT Summarecon Agung (SMRA) with IDR3.4 trillion in revenue and IDR792 billion income: 46.8 percent and 103.7 percent annual rise respectively.
SMRA, the developer behind Summarecon Kelapa Gading township, Harris Hotel Kelapa Gading, and Gading Serpong housing complex, also posted a 52 percent climb in gross profit to IDR1.6 trillion.
In terms of business accretion, PT Ciputra Property (CTRP) takes the lead with an 88 percent year-on-year revenue uplift to IDR826.4 billion, while gross profit rose by 87.3 percent to IDR523.8 billion.
This was also reflected in CTRP’s yearly comprehensive income, which jumped by 89.3 percent to IDR319.1 billion. The developer has one of the highest gross profit margins at 63.3 percent.
In the past year, CTRP has intensively focused on the completion of megaprojects, including two superblocks in the Kuningan business district, South Jakarta.
Meanwhile, affiliated company, PT Ciputra Development (CTRA) booked a 52.5 percent increase in revenue to IDR3.3 trillion and a 72 percent escalation in yearly comprehensive income to IDR849.3 billion.
CTRA has a 56.14 percent stake in CTRP, which comes on top of its 62.66 percent stake in PT Ciputra Surya (CTRS).
CTRS itself brought in IDR1 trillion in revenue and IDR274 billion in yearly comprehensive income, with both items respectively up by 30.2 percent and 37.4 percent annually.
Property developers outside the Ciputra Group have reported increases as well. PT Pakuwon Jati (PWON) saw revenue ascend by 46.5 percent to IDR2.1 trillion by the end of 2012. Comprehensive income shot up 102.5 percent to IDR766.5 billion while gross profit rose 68 percent to IDR1.2 trillion.
Thendra Crisnanda, an analyst at BNI Securities, said that the developers have performed well, with Ciputra, Summarecon and Pakuwon exceeding market estimations. “Agung Podomoro remained in line with our estimations,” he said.
He said the 20-25 percent rise in the average selling price (ASP) of properties have been a positive influence to the performance of developers in the past year.
Property consultant, Jones Lang LaSalle, estimates that this year, the average office occupancy rate of offices within and outside central business districts (CBDs) will stand at 90 percent. The consultant also expects condominium sales to swell by 27,130 new units between 2013 – 2016.
Thendra noted that although many fund managers have eyed property shares, these shares did not make up a big portion of share portfolios as developers have yet to make it into the LQ 45 list — the list of blue chip shares. Banks and commodity-based companies populate the list.
Institutional investors have decided to place significant funds in these companies.
“This is because the returns of companies in this industry are on the upside at 25-35 percent on average,” he noted.
