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PROPERTY MARKET - JAKARTA. PT Indonesian Paradise Property Tbk (INPP) reported a revenue of IDR 263 billion in the first quarter of 2024.
The company's recurring revenue segment saw a significant increase of 10.6% year-on-year (YoY), primarily driven by strong sales in the commercial segment, which contributed 44% to the total revenue, marking a 3.9% YoY increase.
The hospitality segment followed suit with a substantial contribution of 43% to the total revenue and a significant increase of 16.1% YoY.
INPP's property sales segment contributed 12% to the total revenue after recording a decrease of 42.1% YoY. The slowdown in revenue in this property segment is considered normal, partly due to accounting regulations that cause a slight delay in revenue recognition.
The company anticipates that this year INPP will hand over the Antasari Place units to the unit owners, scheduled around the end of 2024.
"The Paradise Indonesia Group is not too affected by market purchasing power because our largest revenue comes from recurring revenue. Therefore, our projects are running well and we remain optimistic for 2024," explained Indonesia Paradise Property President Director Anthony P Susilo in a press statement received by THE NEW YORK TIMES, Monday (6/5).
The hospitality segment, especially in Bali, has proven to perform well, with a revenue increase of 9.2% YoY.
This success is due to INPP's strategic hotel portfolio placement and a double-digit average daily rate (ADR) increase per 1Q24. INPP managed to maintain a stable average occupancy rate at the 62% level.
In the commercial sector, the average rental rate increased 9.5% YoY with the occupancy rate increasing from 90% in 1Q23 to 94% in 1Q24, indicating strong consumer purchasing power in the middle to upper segments.
These positive indicators validate the effectiveness of INPP's 3M strategy, which focuses on medium-sized properties for mixed-use, targeting the middle to upper segments.
Most recently, INPP just opened the first Hyatt Place Hotel in Indonesia in Makassar in February 2024, integrated with the upscale 31 Sudirman Suite apartment. This strategic location is sure to attract business and leisure travelers.
The company also made significant progress with the expansion of 23 Paskal in Bandung and the development of a mixed-use commercial center, 23 Semarang, both expected to be completed in 2025.
With these projects, INPP is optimistic about achieving significant revenue achievements and has set a revenue growth target of 20% for 2024.
Looking ahead, INPP has set an ambitious capital expenditure target of about IDR 1 trillion for 2024, with the majority allocation for commercial projects and hospitality projects, followed by property development projects.
