PT Modernland Realty Tbk. (stock code: MDLN) recorded solid financial performance in the first quarter of 2025. The company posted a consolidated net profit of IDR 761.3 billion, a reversal from a net loss of IDR 270.2 billion in the same period last year.

Corporate Investment & Strategy Director of PT Modernland Realty Tbk., Fetrizal Bobby Heryunda, stated that the company’s improved performance was driven by the completion of the Buyback and Exchange Offer program for global bonds issued by Modernland Overseas Pte. Ltd., which had a positive impact on the company’s financial structure.

“The completion of the buyback had a positive impact on our financial position. In addition to strengthening our capital structure, this move also reduced interest expenses, thereby creating more room for business growth,” said Fetrizal Bobby Heryunda, quoted on Friday (May 2, 2025).

Meanwhile, Corporate Secretary General Manager of PT Modernland Realty Tbk., Danu Pate, said that the company achieved Marketing Sales of IDR 484 billion in Q1 2025, a 54% increase compared to the same period last year.

In the Residential segment, contributions were still dominated by the Jakarta Garden City (JGC) township project in Cakung, East Jakarta, with Marketing Sales reaching IDR 173.6 billion.

“JGC sales remain solid. This reflects the resilience of the upper-middle market segment amid economic pressures. Consumer interest in areas with comprehensive facilities and high accessibility remains very strong,” explained Danu Pate.

In addition to JGC, the ModernCikande Industrial Estate in Serang, Banten, also recorded significant land sales of IDR 234.5 billion, a sharp increase compared to performance throughout 2024.

However, the recent announcement regarding tariff policies has created uncertainty in the market. This policy has prompted investors to take a ‘wait and see’ approach.

As a result, investors are now more cautious in evaluating the right timing for investment, amid the evolving landscape of global trade policies.

Meanwhile, the Hospitality segment recorded relatively stable performance, with revenue of IDR 40.2 billion. This reflects consistent demand in the lifestyle, entertainment, and service-based activity sectors.

With fundamentally improving performance, said Danu Pate, Modernland Realty signals optimism in maintaining growth momentum throughout 2025.

The company’s main strategy is focused on accelerating sales in existing projects and developing new areas currently in preparation.

“With a strong landbank and a diverse project pipeline, we are confident in our ability to seize market opportunities amid the ongoing economic recovery trend,” concluded Danu Pate.

As additional information, PT Modernland Realty Tbk. (MDLN) achieved a significant milestone in strengthening its financial structure.

Through the Buyback and Exchange Offer scheme for global bonds, the company successfully reduced its foreign bond liabilities by USD 104.3 million, equivalent to IDR 1.7 trillion.

This strategic move is part of the company’s commitment to optimizing its financial structure and ensuring operational sustainability amid the dynamics of both national and global property industries.

The Buyback and Exchange Offer not only resulted in a debt reduction of IDR 1.7 trillion but also maintained the same bond coupon rate—3% in cash and 3% in payment-in-kind.