Profits Drop 65 Percent, Developers Of Kota Kasablanka Mall And Gandaria City Owned By Conglomerate Alexander Tedja Not Distributing Dividends

JAKARTA - The property development company, PT Pakuwon Jati Tbk has decided not to distribute dividends to its shareholders. This is because the company in 2020 achieved a significant decline in performance.

Pakuwon Jati's Finance Director and Corporate Secretary Minarto Basuki said the decision was taken at the Annual General Meeting of Shareholders (AGMS) held by the company owned by conglomerate Alexander Tedja on Monday, July 5.

"No dividends will be distributed to shareholders for the 2020 financial year," Minarto wrote in a press release, quoted on Tuesday, July 6.

Based on the financial report as of December 31, 2020, the issuer coded as PWON recorded revenue of Rp.3.97 trillion, down 44.77 percent from the previous year of Rp.7.20 trillion.

Net profit for the year attributable to owners of the parent company also fell 65.80 percent on an annual basis to Rp929.91 billion from the previous Rp2.71 trillion. Despite the decline, PWON's profit ratio in 2020 can be maintained in double digits of 30 percent.

Assets from the developers of Kota Kasablanka and Gandaria City Malls were recorded at Rp. 26.45 trillion at the end of 2020 or grew 1.39 percent compared to the end of 2019 which was valued at Rp. 26.09 trillion. The increase was due to an increase in liabilities of 10.75 percent to Rp. 8.86 trillion, while equity fell 2.74 percent to Rp. 17.59 trillion.

Most recently, PWON also issued debt securities worth US$300 million on April 19, 2021. An additional US$100 million bond was issued on May 17, 2021 with 4.875 percent interest with a 7-year tenor.

The two bonds will be used by the company to pay off debt securities that will mature in 2024 worth 250 million US dollars and for general purposes.