SINGAPORE - Property developer Sinarmas Land saw its profits soar off the back of better sales from its joint venture developments.
Net profit surged 136.6 per cent to S$37.2 million for the three months to March 31. This came off the back of higher revenue, which rose 31.8 per cent to S$237.1 million.
It attributed its stellar performance to an increase in residential units handed over to home buyers in its mixed-use development BSD City in Indonesia, but said it was offset by lower sales of industrial land in Indonesia.
It also recorded a share of profits in joint ventures of S$3.8 million for the first quarter, compared with a loss of S$3.1 million in the same period last year.
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Ms Margaretha Widjaja, executive director of SML and vice-chairman of Sinarmas Land Indonesia, said that Indonesia's economic recovery has been aided by improved commodity prices, albeit at a gradual pace.
While Indonesia's property sector had been negatively impacted by extended periods of lackluster economic performance, consumer purchasing power is set to improve, she added.
"The group is cautiously expecting a stronger recovering, following the Indonesian government's larger infrastructure spending, increased direct investments, led by the implementation of economic stimulus packages," she said.
Earnings per share came in at 0.87 cents for the first quarter, compared with 0.37 cents for the same period a year earlier.
Net asset value as at March 31 was S$0.44, down from S$0.47 three months earlier.