PWON Comprehensive Profit 3Q 2019 Grows 25%
PT Pakuwon Jati (PWON) posted a net income of IDR 5,240 billion, stable from the previous year of IDR 5,299 billion. While comprehensive income was recorded at Rp 2,496 billion, up 25% from 2018 which amounted to Rp 2,002 billion.
The composition of income in 2019 consists of 52% recurring revenue and 48% development revenue, consistent with the Company's strategy to grow with a balanced income composition between recurring and development revenue.
The Company's recurring revenue in 2019 reached Rp 2,730 billion, up 6.5% compared to 2018 which amounted to Rp 2,562 billion, supported by, among other things, increasing organic income from retail shopping centers and existing hotels of the Company.
The Company's development revenue in 2019 reached Rp 2,510 billion due to recognition of revenues from Benson and La Viz apartments, while last amounted to Rp 2,666 billion,.
Based on revenue per segment the biggest contribution was obtained from condo sales and retail leasing respectivly 40%, Hotel and Serviced Apartments 8%, landed houses 6%, office leasing 4% and office sales 2%
The third quarter of 2019 capital expenditure has been disbursed by the Company to reach Rp. 1,283 billion to finance Kota Kasablanka Phase 2 construction projects, Tunjungan Plaza 6, Pakuwon Mall phase 3 & 4, and East Coast Mansion and land purchases.
2019 Growth Base
The Company's recurring revenue, from retail and hotel shopping centers will still provide additional organic revenue in 2019. With the completion of the Blok M Plaza renovation in the second quarter of 2019 and with the operation of the FourPoints hotel in Pakuwon Mall in the fourth quarter of 2019, the recurring revenue will increase 2019 and subsequent years. Whereas Pakuwon Mall Phase 4, Westin Hotel in Pakuwon Mall and East Coast Mall Phase 2 will operate in 2020.
The Company's development revenue will also continue to grow with the recognition of revenues from the sale of apartments in the Pakuwon Mall Superblock (Anderson, Benson and La Viz) and apartments at EastCoast Mansion namely Amor and recognition of Angelo, Bella and Chianti condominium sales at the Kota Kasablanka Superblock.
Overview of PT Pakuwon Jati Tbk.
Pakuwon Jati, is the owner, manager and property developer who entered his 37th year this year. The company has been listed on the IDX since 1989. The company has a well-diversified business concept through investment property, where Pakuwon develops, owns and manages commercial, office and hotel shopping centers and property development, besides Pakuwon Jati develops strata-tittle offices and condominiums. development of township for sale. Pakuwon Jati will continue to grow with a balanced growth strategy between recurring and development revenue.
The following is the Company's property portfolio:
• Superblock Gandaria City, Jakarta (retail shopping centers, apartments, offices and hotels)
• Kota Kasablanka Superblock, Jakarta (retail shopping centers, apartments and offices)
• Somerset Berlian, Jakarta (service apartment)
• Blok M Plaza, Jakarta (retail shopping center)
• Tunjungan City Superblock, Surabaya (retail shopping centers, apartments, offices and hotels)
• Superblok Pakuwon Mall, Surabaya (retail shopping centers, apartments, service apartments and hotels)
• Royal Plaza, Surabaya (retail shopping center)
• Pakuwon City township (landed residential), Eastcoast Center (retail shopping center), and Eastcoast Mansion (apartments that are under construction), as well as Educity apartments, in East Surabaya
• Grand Pakuwon township (landed residential) and Food Junction (Hypermarket, culinary & leisure destination), in West Surabaya