2011 Company Performance is Predicted To Continue To Increase In Line with the Stable Economic Condition and Increased Recurring Income from projects completed in 2010
Bakrieland 2010 Revenue Increases By Almost 30% 2011 Company Performance is Predicted To Continue To Increase In Line with the Stable Economic Condition and Increased Recurring Income from projects completed in 2010
JAKARTA, 25 Maret 2010
Integrated property developer PT Bakireland Development Tbk (“Bakrieland”, IDX:ELTY) today announced its audited 2010 financial statements. Below is the summary of the financial statement:
City Property Projects Largest Income ContributorBakrieland 2010 revenue is supported by City Property business unit which contibuted 35.1% of company’s revenue. Meanwhile, Landed Residential business unit contributed 29.5%, Hotels & Resorts and Toll Road business unit contributed respectively by 29.2% and 6.2%. Revenues from City Property mainly derived from strata office projects which contributed 28.2%, while apartment projects contributed 38.7%.
On the other hand, for Revenue in Landed Residential, Bogor Nirwana Residence’s contribution accounts for 89.7%, followed by Ijen Nirwana Residence and Batam Nirwana Residence which contributed respectively by 7.5% and 2.7%.
Toll Road Continues To Strengthen Bakrieland’s Revenue Bakrieland’s first toll road project, Kanci – Pejagang, that connects Kanci (Cirebon, West Java) and Pejagan (Brebes, Central Java), has shown a significant increase in its traffic trend. When it was intitially operated in early 2010, new traffic load reached 5,000 cars per day. This number increased significantly in December 2010 reaching over 14,000 cars per day, reflecting triple growth-rate approximately within its first year of operation.
Furthermore, traffic reached over 22,000 cars during the Ied holiday season.Looking forward, Kanci-Pejagan’s traffic will continue to increase along with developments occurring in the surrounding areas where the toll road passes as well as with the operation of the Cikampek – Palimanan toll road scheduled to begin construction this year. Recurring Income Will Continue To IncreaseFollowing the operation of the Kanci-Pejagan toll road, which was inagurated by President Susilo Bambang Yudhoyono in January 2010, as well the operation of the Epicentrum Walk (Creative and Lifestyle Entertainement Hub) in March and Epicentrum XXI in April as well as the Bakrie Tower in May and the inaguration of Aston Bogor Hotel & Resort in December, it is clearly defined that the year 2010 is Bakrieland’s Delivery Year. In addition, Pullman Bali Legian Nirwana Condotel has officially began operation in February 2011.
The six new operating projects will be a substantial additional to the current variety projects with recurring income that will also increase Bakrieland’s overall revenue. In 2010, assets with recurring income has contributed 35.7% of the total revenue, which is estimated to increase in line with Bakrieland’s plan to enhance the projects. Furthermore, Bakrieland estimates the biggest contributor to 2011 revenue will remain to derive from City Property business unit’s Rasuna Epicentrum considering that demand for apartments will continue to grow along with Indonesia’s strong economic growth, increase in purchasing power, change in lifestyle and scheduled topping-off of The Wave and The Grove apartments. Therefore, Bakrieland is optimistic that 2011’s revenue potential will increase along with the solid economic condition, Bakrieland’s coming projects on top of projects newly operated in 2010 and becomes additonal recurring income sources. Business Development Focus: Converting Landbank to Cash Flow
Throughout 2011, Bakrieland will prioritize its business development by converting owned landbanks to cash flow. This is possible after Bakrieland has acquired a significant amount of land areas in strategic locations in the last few years and also of the high potential growth with such attractive valuation rate, such as in Jakarta’s CBD – Kuningan, Bogor, Jonggol and a other strategic locations. To speed up landbank conversion to cashflow, Bakrieland plans to invite strategic partners or investors that will jointly develop its owned landbanks, now totalling to some 13,000 hectares. Company’s Solid Balance Sheet With equity of Rp 8.0 trillion, Bakrieland is one of the property companies with the highest equity in Indonesia and a solid balance sheet.
This is reflected from the interest bearing liabilities towards equity or DER per December 31, 2010 of 40.1%. This leverage position will decrease if using net gearing ratio as benchmark of 29.3%. - End-
About BakrielandPT Bakrieland Development Tbk (Bakrieland) is an integrated property developer in Indonesia (code: ELTY) which has 4 business units i.e. City Property, Landed Residential, Hotels & Resorts, and Property Related Infrastructure. ·
Bakrieland is the integrated property developer that highly implements Good Corporate Governance in its operations·
Bakrieland has obtained ISO 9001:2008 certificate for quality control management
For further information, please contact:
PT Bakrieland Development Tbk
Nuzirman NurdinCorporate Secretary
Ph. 6221 525 7835
Fax. 6221 522 5063