Jakarta. Property developer Lippo Cikarang announced on Tuesday (24/04) its audited financial results for the financial year that ended in December 2017.
In the midst of property-sector slowdown and weakening customer confidence, the company reported 32.05 percent decline in profit to Rp 368 billion ($26.4 million) last year. Revenue declined 2.83 percent to Rp 1.5 trillion.
The company booked Rp 1.12 billion in revenue from its residential housing and apartment division, which made up 75 percent of total revenue. The company's commercial division recorded revenue of Rp 54 billion, or 4 percent of the total, while revenue from the industrial estate division amounted to Rp 33 billion, or 2 percent of the total.
On the other hand, the company's recurring income, which contributed 19 percent of the total revenue, rose to Rp 285 billion from Rp267 billion a year ago.
The company's total assets grew 119 percent to Rp 12.37trillion trillion last year, mainly due to infrastructure stock additions, investment in residential, commercial and apartment developments, and additions of land in maturation.
"The 2017 results reflected the softening of Indonesia's property market during the period. However, with our breakthrough township project Meikarta, we believe we will have sustainable projects for future growth," Lippo Cikarang president director Ivan Budiono said.
Lippo Cikarang is a subsidiary of Lippo Karawaci, Indonesia's largest listed property company. The urban developer manages a total area of more than 3,400 hectares, mostly industrial estates.
The Jakarta Globe is affiliated with the Lippo Group.