Indonesian property developers boast sky-high 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 4.7 trillion rupiah (US$484.1 million) in revenue and 841.3 billion rupiah in comprehensive income. The figures represent a 22.6 per cent and 22.8 per cent year-on-year increase.
Another strong performer is PT Summarecon Agung (SMRA) with 3.4 trillion rupiah in revenue and 792 billion rupiah income: 46.8 per cent and 103.7 per cent annual rise respectively.
SMRA, the developer behind Summarecon Kelapa Gading township, Harris Hotel Kelapa Gading, and Gading Serpong housing complex, also posted a 52 per cent climb in gross profit to 1.6 trillion rupiah.
In terms of business accretion, PT Ciputra Property (CTRP) takes the lead with an 88 per cent year-on-year revenue uplift to 826.4 billion rupiah, while gross profit rose by 87.3 per cent to 523.8 billion rupiah.
This was also reflected in CTRP’s yearly comprehensive income, which jumped by 89.3 per cent to 319.1 billion rupiah. The developer has one of the highest gross profit margins at 63.3 per cent.
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 per cent increase in revenue to 3.3 trillion rupiah and a 72 per cent escalation in yearly comprehensive income to 849.3 billion rupiah.
CTRA has a 56.14 per cent stake in CTRP, which comes on top of its 62.66 per cent stake in PT Ciputra Surya (CTRS).
CTRS itself brought in 1 trillion rupiah in revenue and 274 billion rupiah in yearly comprehensive income, with both items respectively up by 30.2 per cent and 37.4 per cent annually.
Property developers outside the Ciputra Group have reported increases as well. PT Pakuwon Jati (PWON) saw revenue ascend by 46.5 per cent to 2.1 trillion rupiah by the end of 2012. Comprehensive income shot up 102.5 per cent to 766.5 billion rupiah while gross profit rose 68 per cent to 1.2 trillion rupiah.
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 per cent 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 per cent. 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 per cent on average,” he noted.