Indonesian Prima Property books higher revenues
JAKARTA (JP): Publicly listed property firm PT Indonesia Prima Property, of the Gajah Tunggal Group, reported a 41 percent increase in its consolidated revenue to Rp 47.9 billion (US$19.6 million) in the first half of this year, up from Rp 33.9 billion for the same period in 1996.
In a statement released on Saturday, the company said its net profit rose by 7.5 percent in the first half this year to Rp 3 billion, from Rp 2.8 billion for the same period in 1996.
Prima Property has various development projects and properties, including residential, retail properties, hotels and resorts, serviced apartments and office buildings.
The company attributed the profit growth to an increase in service revenues generated from the rental income of Mal Blok M and Wisma Rajawali, the company's shopping center and office building.
The residential sector remained the major contributor to its revenue, followed by hotels and serviced apartments and the retail and office sector, the company said.
Last February, the company acquired PT Angkasa Internland, which owns the 32-story Puri Casablanca condominium complex, and PT Panen Lestari Basuki, the owner of Wisma Rajawali.
"The acquisition has contributed to this year's growth in revenue," the company said.
Prima Property reported that hotels and serviced apartments had experienced a significant 158 percent revenue growth, to Rp 8.5 billion in the January to June period in 1997, from Rp 3.3 billion for the corresponding period last year.
"The increase was mainly generated from the recognition of income from the Mercure Grand and Novotel Surabaya serviced apartments, which started operations in 1996."
In the first half of this year, the Mercure Grand and Novotel Surabaya achieved an average occupancy rate of 70 percent, the company said.
The company announced that revenue from sales increased by 17 percent, to Rp 26.8 billion, in the first half of this year due to the income recognition from the Puri Casablanca condominium complex.
Revenue from services grew by 59 percent to Rp 12.6 billion, mainly generated from Mal Blok M's rental income contribution to the growth in service revenue in the first half of this year.
The company's operating expenses grew by 95 percent to Rp 18.4 billion in the January to June period as compared to the same period last year, because of the full operation of the company's hotels and serviced apartment in the first half of 1997.
Prima Property's assets were up by 114 percent to Rp 1.21 trillion, propelled by a 218 percent increase in fixed assets.
The company's assets include offices (43 percent), residential (30 percent), retail (15 percent) and hotel and serviced apartments (12 percent). (icn)