PT. Ciputra Development Tbk or CTRA reported total revenues of Rp6.4 trillion in 2017, down by 4% compared to Rp6.7 trillion in 2016.
The recurring segment which includes shopping centres, hotels, office leasing, and hospitals reported revenues of Rp1.7 trillion, up by 7% compared to the same period in 2016. Revenue from shopping centres increased by 1% to Rp763 billion. Revenues from hotels rose by 17% to Rp480 billion. Office leasing revenues increased by 15% to Rp132 billion. Overall, recurring revenues accounted for 27% of total revenues in 2017.
The property development segment, which includes the sale of residential houses and shophouses, land lots, apartments, and office towers reported revenues of Rp4.7 trillion, down by 8% versus Rp5.1 trillion in 2016. The longer revenue recognition is mainly within the residential houses and shophouses sub-segment, which is reflected in the 12% decline in revenues to Rp3.4 trillion from the same period in 2016.
Based on this performance, the company’s net profit in 2017 reached Rp894 billion during 2017, or decreased by 12% from 2016. This was more due to timing differences over revenue recognition. Thus, the Company is optimistic that net profit in 2018 will rise in line with the increase in revenue recognition.
Optimism about achieving better financial performance in 2018 also considers the marketing sales backlog that exists today. This can be seen from the achievement of marketing sales in the first two months that has reached Rp1.0 trillion, from the total target this year of Rp7.7 trillion.
“This is a promising sign given the achievement represents an 18% growth compared to the same period last year. We plan to continue to leverage on our wide geographical footprint, diverse product portfolio, and strong brand equity to further expand our projects in strategic locations,” said President Director PT Ciputra Development Tbk, Candra Ciputra.
In 2017, Ciputra launched four new projects: Barsa City Yogyakarta, CitraLand Cibubur in East Greater Jakarta, CitraLand Tallasa City in Makassar, and CitraPlaza Nagoya in Batam. These developments strengthen the Company’s nationwide presence and are positioned in key locations to benefit from the growth of the local economy.
In efforts to increase the portion of recurring revenue of the Company, Ciputra started ground-breaking on two new shopping centres in 2017: Ciputra Mall CitraRaya Tangerang and Ciputra World Surabaya Mall Extension. The former further complements Ciputra’s integrated township in West Greater Jakarta while the latter expands the lifestyle amenity of the superblock in West Surabaya. This will add to the Company’s existing portfolio of four shopping centres and increase the total Net Leasable Area by over 30% to 260,000 square metre within the next two years.
Additionally, the Company completed a new office building within the Ciputra World Jakarta superblock in Central Jakarta with a Semi Gross Area of 64,000 square meters, increasing the total office portfolio by 32% to 267,000 square meters.
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