A revenue slide for Indonesian property developer Sinarmas Land in the first quarter led to net profit tumbling 26.3 per cent to $28 million from the preceding year's $38 million.
For the three months ended March 31, revenue fell 23.8 per cent to $187 million from $245 million in the same period last year.
This came as fewer units were handed over at BSD City, a 6,000ha planned community in the Greater Jakarta area, and lower industrial land sales in Bekasi, Sinarmas said.
But leasing income from its Horseferry building in London, as well as higher leasing income from its investment properties in Indonesia, helped cushion the blow.
Earnings per share dropped to 0.66 cent from 0.89 cent in the preceding year.
Sinarmas has restated its first-quarter results from last year after adopting the Singapore Financial Reporting Standards (International) framework this year. Revenue for the quarter was previously $237 million, and net profit was previously $37.2 million.
AT A GLANCE
REVENUE: $187 million (-23.8%)
NET PROFIT: $28 million (-26.3%)
Sinarmas noted the slower growth in household consumption in Indonesia for the first quarter, and the possibility of an increase in rates to defend the rupiah from depreciating further.
"We expect the macroeconomic factors to weigh on our marketing sales this year, and as of now, we do not expect significant one-off transactions on land sales as compared to last year," it said in its statement.
"Furthermore, with Indonesian regional elections happening this year, the demand for home purchases is expected to dampen, as consumers adopt a wait-and-see approach for big spending."
It said it would use defensive marketing tactics such as the Price Lock and Price Amnesty programmes, and has tied up with 12 Indonesia banks to introduce a mid-year Easy Deal marketing programme.
Sinarmas Land shares closed unchanged at 38 cents yesterday.