SINARMAS Land posted a 18.7 per cent drop in net profit to S$89 million for its first half ended Jun 30, 2024, from S$109.5 million in the previous corresponding period.
This was mainly due to fair value losses and impairment losses incurred from certain wholly owned subsidiaries, despite a higher profit for the period, the property developer said in a regulatory filing on Monday (Aug 12).
Earnings per share stood at 2.09 Singapore cents for the half year, down from 2.57 cents the previous year.
Revenue for H1 rose 28.1 per cent to S$766.1 million, from S$598.1 million a year earlier.
This was due to higher sale of industrial and undeveloped land parcels in BSD City and Kota Deltamas, Indonesia, as well as higher revenue recognised from residential units and industrial buildings, it said.
No dividend was declared for the half year, unchanged from the year before.
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Margaretha Widjaja, Sinarmas Land’s executive director and vice-chairman of Sinarmas Land’s Indonesia division, said the company will adopt a cautious approach in response to the volatile macroeconomic environment.
She noted several factors that continue to hinder global economic progress, including heightened geopolitical tensions, domestic unrest, a high interest-rate environment and sluggish economic growth in developed nations.
There are also concerns of a potential US recession, while the recent sharp decline in global stock markets could lead to risk-averse behaviour among investors, potentially affecting property prices worldwide, she said.
“We will continue to monitor property markets and adjust strategies accordingly, anticipating that central banks may move slowly towards rate cuts to counter persistently high inflation and stimulate economic growth,” she added.
Shares of Sinarmas Land ended 5.2 per cent or S$0.008 higher at S$0.162 on Monday, before the release of the results.
