Pollux Properties Indonesia Posts Record 707% Increased Profit In Q2 2021, Anticipates Post-COVID Growth
Pollux Properties Indonesia announces profit of USD$8.19 million in Q2, June 2021, an over 707% increase compared with the previous year.
Profit and revenue increase attributed to strong management that led to successful completion of key investment properties and important operational efficiencies within the Group.
Group expects Indonesia's economic recovery to continue as pandemic situation stabilises, eyes post-COVID growth in 2022 through completion of more investment properties.
World Capital Tower - located next To Ritz Carlton Mega Kuningan - Jakarta
PT Pollux Properties Indonesia [IDX: POLL], a leading developer of real estate in Indonesia, today reported financial results for the three-month period ended second quarter, 30 June 2021. The Group's reported profit attributable to the Company's shareholders for the quarter ended 30 June 2021, excluding the effect of fair-value changes on investment properties, are up 707.64% to USD$8.19 million, compared to USD$1.02 million for the same quarter last year.
Total revenues for the three-month period ended 30 June 2021 are up 122.27% to USD$30.63 million compared to USD$13.78 million for the same quarter last year. The consolidated financial results reported today include the accounts of PT Pollux Properties Indonesia and its subsidiaries.
In the first quarter of 2021, POLL recorded a revenue surge of 3,113 percent to USD$13.6 million, from USD$424,973 in the same period the previous year. This steady pace continues the Group's reversal of losses incurred in the pandemic recession in 2020.
BUSINESS REVIEW:
STRONG MANAGEMENT LEADING TO EFFICIENT OPERATIONS AND SUCCESSFUL COMPLETION OF INVESTMENT PROPERTIES DESPITE PANDEMIC CONDITIONS:
The COVID-19 pandemic, which has infected millions of people across the world has caused major disruption to its economy. Various sectors have been hit immensely, especially property. Despite the difficulties, the Group attributes this year's remarkable Q2 performance to the astute leadership from the Board and all employees who has led to the successful completion of our key investment properties Pollux Chadstone and Pollux Meisterstadt Phase 1, as well as the efficient operations of our recurring income components within our properties. The management's preliminary foresight to focus on sustainable integrated, mixed-use developments built for the community and environment before the pandemic has also aided in ensuring that our property developments remain relevant and resilient.
CONTINUING FOCUS ON DELEVERAGING, REDUCING COST OF FUNDS AND RELIANCE ON DEBT:
Even as the Group's finances and performances are robust, the management remains focused in deleveraging and reducing debt of the Group as one of our important components in the Group's performance evaluations for this year. The Group will continue to strengthen our capital structures and reduce reliance on debt through strong selling of our non-core inventory. Additionally, the Group will maintain close working partnerships with our financial institution partners to lower our cost of funding and existing level of interest rates.
HIGHLIGHTS OF COMPLETED INVESTMENT PROPERTIES:
Despite difficulties from construction resources and lockdowns during the pandemic, the Group has successfully completed Pollux Chadstone – a 300.000 m2 world-class, vertical integrated development strategically located at the heart of Cikarang city. Comprising of 3 high-rise 45 storey apartment towers, 1 international branded serviced residences tower, a shopping mall, 2 blocks of upscale hotel suites and a 4-star business hotel – Pollux Chadstone is now energizing and serving the city's diverse local and expat community as Cikarang's largest and tallest, sustainable landmark that offers the very best of living, retail, recreation, work, and civic facilities.
The Group has also completed the first phase of Pollux Meisterstadt that consists of 3 apartment towers, an upscale hotel and serviced residences tower as well as 113 shop units with a total Semi Gross Floor Area (SGFA) of approximately 300,300m2. Part of a 9 hectares integrated vertical city masterplan collaboration between Pollux Properties Indonesia and the extended family of the late 3rd President of Republic of Indonesia Prof. Dr. Ing. BJ Habibie, the full masterplan of Pollux Meisterstadt will be divided into 4 phases which will encompass 11 skyscrapers consisting of 8 apartment towers totalling 6500 units, 1 up-scale hotel and serviced residences tower, 1 international hospital, a mega mall, a shophouses district, as well as an office building with a planned height of 100 floors.
The Group has completed 84,500m2 of premium office space in the prestigious World Capital Tower that is strategically located in Mega Kuningan just next to Ritz Carlton. With its superior building quality, long-standing relationship with tenants and professional leasing and property management services, the World Capital Tower's premium offices have gained high recognition in the market. During the year, the portfolio registered stable performance with satisfactory occupancies amid challenging market conditions.
The Group aims to increase earnings performance from the development through the efficient operation of its completed shopping mall, commercial office spaces, hotels and serviced apartments as recurring income components. The Group is engaging in on-going operator contract negotiations with international hospitality brands to further enrich our market presence, guest experience, and return of investment in the development's hotels and serviced apartments components in anticipation of the international borders reopening.
To ensure our properties remain relevant in the future, we hold a strong awareness of the importance of creating sustainable developments for the future. Both Pollux Chadstone and Pollux Meisterstadt are developed with SRPD (socially responsible property development) processes and standards that are specifically undertaken to reduce the negative impacts of the built environment. We seek to efficiently use energy, water, and other resources for cost efficiency and environment protection; protecting occupants' health and improving employees' productivity as well as reducing waste, pollution, and environmental degradation. The technology infrastructure built into these developments also provides Building Automation Systems that ensures better use of energy in our building's HVAC systems, lighting and plugged-in appliances, monitoring our residual emissions and carbon output, managing our digital and IT facilities as well as security systems.
HAND-OVER OF COMPLETED PROPERTY UNITS:
Despite the pandemic's detrimental effects to the property and construction sectors since early 2020, the Group has successfully maintained a steady pace in handing over sold inventory units to our customers. To further expedite the handing over of apartment and shophouse units to our customers, the Group has commenced efforts to increase our customer service capacities. This is accomplished through enabling consistent information updates through all of our communication channels, implementing streamlined safety procedures and protocols during hand-overs in-person, and increasing manpower resources to our hand-over, customer service and call centre departments. This will allow us to accelerate the handover processes to make up for time lost during the pandemic while safeguarding the health and safety of our customers and employees.
2022 PERFORMANCE – RESTARTING MARKETING PROCESSES AND OPERATING INVESTMENT PROPERTIES TO FUEL POST COVID GROWTH:
The Group is continually committed to delivering quality products and services to homebuyers, and is now focusing on recovering time lost from the pandemic by safely reactivating construction, marketing sales, and customer support across our investment properties and retail malls. Construction kick-off processes with our construction partner and engineers has since reactivated in accordance with the government's pandemic safety protocols for Pollux Technopolis - a prestigious, sustainable smart-city masterplan that is set to serve Kawarang Industrial area as the City for the Future in Indonesia.
The Group expects our earnings performance in 2022 to increase substantially from new property sales and recurring income from our upcoming properties that includes 2 new malls totalling 60,000m2 of Net Lettable Area (NLA), 60.000m2 NLA of office space, and 1700 keys of hospitality asset as the pandemic situation improves.
PROSPECTS:
Indonesia's socio-economic potential remains attractive for investors and developers, and Pollux Properties Indonesia remains cautiously optimistic for the future ahead. The economy is still likely to face different challenges and uncertainties, including uneven recoveries across industries, COVID-19 mutations and the subsequent spreading of new variants and other geopolitical risks. Thanks to the government's plan to fill the rising gap of residential housing needed in Indonesia, infrastructure development plans to enhance Indonesia's status as a manufacturing, trade and industry centre, the omnibus law to support more foreign investments, as well as the nation's improving pandemic condition, the Group is confident about the prospects of Indonesia's property market in the future.
With our mission of building homes and places for our community, the Group strives to develop its projects not just as quality real estate, but more so an integrated, life-enhancing, sustainable, and technology-embedded place for living good and holistic lives. The Group will continue to be steadfast and strengthen its core businesses by focusing on delivering quality, future-proof and sustainable properties to strengthen its property investment business, maintaining operational efficiencies in our recurring income components, enhancing our services capacities and processes to support our customers and stakeholders during the pandemic, and diversifying into new property-related sectors when opportunities arise.
For full details on PT Pollux Properties Indonesia's reported results, please download the full financial results announcement here: https://bit.ly/polluxid-q2-2021
About Pollux Properties Indonesia:
PT Pollux Properties Indonesia TBK [IDX:POLL] is an acclaimed, award winning property developer and management group specialising in developing commercial, residential apartment and retail properties in Indonesia. With a single-minded focus on creating remarkable urban spaces to elevate living experiences, the company has delivered numerous market demanding projects – leading the industry in elevating the standards of lifestyle in Indonesia.
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