Summarecon Targets Marketing Sales Of IDR 2.5 Trillion This Year

Board of directors of PT Summarecon Agung Tbk after the AGMS. (Photo: Summarecon)

JAKARTA - Property developer, PT Summarecon Agung Tbk decided to correct its 2020 marketing sales target to IDR 2.5 trillion from the previous plan of IDR 4.5 trillion.

"The condition of the COVID-19 pandemic has indeed corrected our sales. In fact, previously our sales target in 2020 was IDR 4.5 trillion and we will correct it," said Summarecon Agung President Director, Adrianto Pitoyo Adhi during a virtual Public Expose in Jakarta, Wednesday 12 August.

According to Adrianto, the issuer coded as SMRA shares has calculated the amount of marketing sales correction that takes into account the economic uncertainty due to the COVID-19 pandemic, so the company has set a target change in 2020 to IDR 2.5 trillion.

Until the end of July 2020, Summarecon's total marketing sales were recorded at IDR 1.3 trillion and is expected to reach IDR 2.5 trillion by the end of this year. As much as 60 percent will be contributed by the housing sector, amounting to 47 percent from shop houses (ruko), 16 percent from apartments and 7 percent from offices.

"We have to be realistic in the midst of the COVID-19 pandemic which has resulted in economic uncertainty. If we don't make corrections to this target, it will be unrealistic with current conditions," he said.

As for the implementation of the Annual General Meeting of Shareholders (AGMS) in Jakarta today, Summarecon's shareholders agreed that there was no dividend distribution from net income in 2019 which reached IDR634.22 billion. As much as Rp6.34 billion of the net profit will be set aside as reserve funds and Rp627.88 billion will be included as retained earnings.

Not For Dividends

Adrianto explained that the AGMS decision not to distribute dividends was a step to anticipate domestic economic conditions that were still overshadowed by uncertainty. "The COVID-19 pandemic is a formidable challenge. Overall, this affects all business sectors, including property," he added.

On the same occasion, Director of SMRA, Lydia Tjio said, the AGMS today also approved Summarecon's asset guarantee plan to exceed 50 percent of net worth in one financial year, in order to obtain loans from domestic and foreign financial institutions.

Regarding the bonds maturing in November 2020 amounting to Rp. 800 billion and December 2020 amounting to Rp. 500 billion, Lydia said, the funds to pay for these bond obligations will come from internal cash.

However, he continued, it is possible that the payment of the maturing obligation will take advantage of raising funds through the capital market or banking.

"We still have a PUB (Sustainable Public Offering) facility of Rp 2.5 trillion and a bank loan facility totaling Rp 3 trillion," said Lydia.