Despite rise in Q2 earnings, Sinarmas Land's first half net profit is halved

SINGAPORE - Indonesia developer Sinarmas Land said its second quarter net profit rose by 44 per cent to $35.3 million despite revenue falling 4.4 per cent to $222.8 million.

Earnings per share firmed to 0.83 cent from 0.8 cent previously while net asset value per share was unchanged at 41 cents.

But for the half year ended June 30, the group reported a 51.1 per cent drop in earnings to $51 million.

Turnover fell by 22.3 per cent to $402.7 million, mainly due to lower sales of land for commercial and industrial purposes in Indonesia and lower number of residential units handed over to buyers in BSD City.

This decrease was partially offset by leasing income from the newly acquired 'Alphabeta' building in London, as well as higher leasing income from investment properties in Indonesia due to better average rental rates.

On its prospects, Sinarmas said its Indonesian property division expects the operating environment to be challenging for the rest of the year.

Internationally, the group's UK property division has been affected by the 10 per cent devaluation of the sterling pound, following Brexit.