Jakarta -PT Ciputra Development Tbk. (CTRA) recorded total revenues of Rp6.4 trillion in 2017, down 4% from the previous year’s realization of Rp6.7 trillion.
Acquisition of the recurring revenue segment that includes shopping centers, hotels, office rentals and hospitals reached Rp1, 7 trillion, up 7% compared to Raihan 2016.
Revenue from shopping centers rose 1% to Rp763 billion, revenue from the hotel increased 17% to Rp480 billion, while office rental income grew 15% to Rp132 billion. Overall, this recurring revenue segment contributed 27% of total revenue in 2017.
The revenue from the property development segment which includes residential houses, shop houses, land, apartments and office buildings stood at Rp4.7 trillion, shrinking 8% from Rp5.1 trillion in the previous year.
Longer recognition of income, particularly in residential and home-office subscriptions, is reflected in a 12% drop in revenues to Rp3.4 trillion from the same period in 2016.
Based on these performance, CTRA’s net profit last year reached Rp894 billion. This figure is down 12% from 2016 worth Rp1.02 trillion.
The Company stated this is more due to timing differences over the recognition of sales. Thus, CTRA is optimistic that net income in 2018 will rise in line with the increase in sales recognition.
Optimism about achieving better financial performance this year also takes into consideration the current backlog. 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.
“That is certainly a good indicator because there is an 18% growth compared to the same period last year. We are optimistic that we can achieve this year’s target by considering several things, such as the diversity of products, geographical coverage, and strong brands, “said CTRA President Director Candra Ciputra in a press release on Thursday (29/3/2018).
During 2017, CTRA launched four new residential projects namely Barsa City Yogyakarta, CitraLand Cibubur, CitraLand Tallasa City Makassar, and CitraPlaza Nagoya Batam. This is expected to strengthen CTRA’s position in the national property business scene and provide benefits to the local economy.
In an effort to increase recurring segment revenue in 2017, CTRA has also been groundbreaking two new shopping centers – Ciputra Mall – CitraRaya Tangerang and Ciputra World Surabaya (CWS) – Mall Extension.
The presence of Ciputra Mall is increasingly complementing the facilities in CitraRaya Tangerang project, while CWS – Mall Extension will complete the lifestyle facility in West Surabaya area. The existence of the two malls will increase the total Net Leasable Area (NLA) by more than 30%, to 260,000 square meters in the next two years.
In addition, CTRA is also completing the construction of an office building in the superblock area of Ciputra World 2 Jakarta in CBD with Semi Gross Area covering 64,000 square meters. The project will increase the total portfolio of CTRA office businesses by 32% or to 267,000 square meters.