Bumi Serpong Damai, the property unit of Sinar Mas Land, reported a 49 percent increase in profit for the first nine months of this year thanks to the growing property sales, the company said in a statement on Tuesday.
The listed property company posted Rp 3.2 trillion ($264 million) in net income between January and September, increased from Rp 2.1 trillion in the same period a year ago.
Meanwhile, revenue fell 7.4 percent to Rp 3.9 trillion from Rp 4.2 trillion. Some 82 percent of the revenue, or Rp 3.2 trillion was contributed by land, housing, shophouse and industry buildings sales.
The company, which owns Serpong, one of Indonesia’s biggest integrated townships, located in Banten’s Tangerang district, also posted a 12.14 percent decline in cost of revenues to Rp 948 billion.
BSD director and corporate secretary Hermawan Wijaya explained the revenue decline was caused by absence of extraordinary income.
In the first nine month of last year, BSD’s revenue was boosted by Rp 1.3 trillion from extraordinary income land sales to Hongkong Land, Japan’s AEON Mall Group and Dyandra Media International.
According to the developer’s statement, land sales accounted for the largest source of revenue, 37 percent, in the first nine months at Rp 1.46 trillion of total consolidated revenue.
The second biggest contributor came from residential unit sales, which contributed about 32 percent, or Rp 1.25 trillion, of total revenue. Commercial sales came in third, contributing about 20 percent, or Rp 493.7 billion.
BSD’s signature project is BSD City, an integrated township that occupies 5,950 hectares west of Jakarta.
The township has residential and commercial buildings as well as other supporting facilities like schools and malls.