SINGAPORE (May 14): Sinarmas Land saw its earnings fall 26.3% to $28.0 million for the 1Q ended March, from $38.0 million a year ago.
1Q18 revenue dropped 23.8% to $187.0 million, from $245.4 million a year ago, mainly attributable to lower number of residential units handed over to buyers in BSD City in Indonesia.
The lower revenue was partially offset by leasing income from the Horseferry building in London, as well as higher leasing income from its investment properties in Indonesia.
Foreign exchange losses for the quarter were 84.2% lower at $2.4 million, compared to forex losses of $15.3 million a year ago. This was mainly due to translation gain on US dollar-denominated payables following the weakening of US dollar against the Malaysian ringgit and Singapore dollar in 1Q18.
The group reported a loss of $3.0 million in 1Q18 from share of results of joint ventures, compared to a gain of $4.2 million a year ago. This was mainly due to lower sales of residential units in certain joint ventures, coupled with the pre-operation costs incurred for certain joint ventures in Indonesia.
Other operating income fell 38.3% to $7.3 million during the quarter, from $11.8 million a year ago. This was mainly due to absence of fair value gain on conversion option, partially mitigated by higher property management income.
As at end March, cash and cash equivalents stood at $733.9 million.
“Cautiously mindful that property sales outlook might be hampered by June 2018 regional elections and 2019 general elections as consumers usually adopt a wait-and-see approach during such period of uncertainty, the group has tied up with 12 leading Indonesia’s banks to introduce a mid-year ‘Easy Deal’ marketing programme to help homebuyers buy their dream homes,” says Margaretha Widjaja, Sinarmas Land’s executive director.
“The group shall continue to execute its geographical expansion and earnings diversification strategy to increase its recurring income base and navigate the challenges ahead,” she adds.
Shares of Sinarmas Land closed flat at 38 cents on Monday.