Property Industry Rises, BSDE Record Net Profit Reaches IDR 2.33 Trillion

BSD (Photo; dock between)

Property issuer, PT Bumi Serpong Damai Tbk (BSDE) recorded a net profit of IDR 2.33 trillion in the first half of 2024 or had exceeded last year's Net Profit achievement of IDR 1.94 trillion.

"This positive achievement should be appreciated because the global economy has not shown stability, especially the issue of exchange rates and decreased purchasing power," said BSDE Director Hermawan Wijaya in the Public Expo Live 2024, Wednesday, August 28.

Members of the Sinar Mas Land property group and developer of BSD City, the largest independent city in Indonesia, posted a 94.28 percent Net Profit surge in the first half of 2024, to IDR 2.33 trillion.

"This figure is even almost equal to the achievement of Net Profit for the 2022 financial year," added Hermawan.

Net Profit Performance at the end of last June could not be separated from the growth in Operating Revenue, especially revenues obtained from sales of property products and recurring income, such as rent.

Hermawan conveyed that the solid assets of BSDE spread across nine major cities of Indonesia made sales performance not dependent on one project or one region. BSDE projects are spread across Medan, Palembang, Jabodetabek, Semarang, Surabaya, Balikpapan, Samarinda, Makassar and Manado.

The BSDE flagship project, namely BSD City, has now entered phase 3 with an area of development of 2,450 ha, which is still a motor for selling residential and commercial units.

In addition, there are several other projects such as the Grand Wisata area, Bekasi covering an area of 1,100 ha, the Kota Wisata area, Cibubur covering an area of 700 ha.

During the first six months, BSDE managed to record an increase in Operating Revenue by 46.99 percent to Rp7.35 trillion, while effectively controlling costs, so that Gross Profit was recorded at Rp4.86 trillion, up 53.07 percent from the previous year which amounted to Rp3.18 trillion.

Hermawan said that this increase in gross profit shows BSDE's ability to improve profit margin performance.

Meanwhile, the sales segment of land, buildings and strata title was recorded at IDR 6.44 trillion, contributing around 87.70 percent to consolidated business revenue. This segment recorded a positive growth of 54.90 percent compared to the same position last year.

According to Hermawan, the rental segment is the segment with the second largest contribution to total business revenue on a consolidated basis.

This segment posted revenue of IDR 468.71 billion, growing 0.91 percent compared to last year's IDR 464.49 billion. This segment contributed 6.38 percent.

Meanwhile, the third largest segment based on contribution is the building management segment, with a contribution of 2.58 percent to the total consolidated business revenue.

Hermawan said that until the end of June 2024, this segment managed to collect performance of IDR 189.58 billion, growing 4.57 percent compared to last year's IDR 181.30 billion.

Hermawan explained that as of June 30, 2024, the composition of the performance of recurring revenue and income on total consolidated business revenues was around 88 percent and 12 percent, respectively.

Meanwhile, net profit in the second quarter of 2024 was recorded at IDR 2.33 trillion, a significant increase of 94.28 percent compared to the same period the previous year which amounted to IDR 1.20 trillion.

Solid financial performance also has an impact on the results of BSDE's pre-sales. Until the end of June 2024, BSDE managed to achieve IDR 4.84 trillion. This figure is equivalent to 51 percent of the 2024 target of IDR 9.50 trillion.

Based on the pre-sales figure for the first half of 2024, the residential segment contributed IDR 2.61 trillion or 54 percent of the total pre-sales. Meanwhile, pre-sales of commercial segments, including commercial lots, apartments and shophouses contributed IDR 1.67 trillion, representing 34 percent of the total pre-sales.