Jakarta, December 12, 2024 – Property issuer PT Modernland Realty Tbk. (MDLN) held its 2024 Annual Public Expose event at the Club House of Jakarta Garden City, Jakarta. The presentation included reports on the company's financial performance and marketing efforts up until September 2024, as well as challenges that may arise and strategic efforts to enhance company performance.

The event, which was attended by the Board of Directors, Commissioners, and Management of PT Modernland Realty Tbk., marked an important moment for the company to communicate its performance and future growth strategies to shareholders and the public.

“As a publicly listed company whose shares are recorded and traded on the Indonesia Stock Exchange, this Public Expose event is mandatory each year in accordance with Securities Listing Regulation No.1E, as outlined in the Appendix to the Decision of the Directors of PT Jakarta Stock Exchange, which is now known as PT Indonesia Stock Exchange,” said William Honoris, President Director of PT Modernland Realty Tbk., in his opening remarks at the Public Expose on Thursday, December 12.

William Honoris stated that the purpose of the Public Expose was to provide an overview of the company's performance up to September 2024 and to address challenges the company faces related to macroeconomic conditions affecting the national economy, particularly in the property sector.

“On November 26, 2024, the company announced this Public Expose plan to PT Indonesia Stock Exchange through SPE IDX Net. As per the regulations, the materials for this Public Expose were submitted to PT Indonesia Stock Exchange through SPE IDX Net on Friday, December 6, 2024, and are accessible to stakeholders both domestically and internationally,” explained William Honoris.

Dharma Mitra, Director of PT Modernland Realty Tbk., shared that Indonesia's economic growth has remained stable during the first nine months of 2024 despite increased global financial market uncertainties. According to the Central Statistics Agency (BPS), Indonesia's economic growth in Q3 2024 was 4.95% (year-on-year), compared to 5.05% (year-on-year) in the previous quarter. Going forward, economic growth in 2024 is projected to range from 4.7% to 5.5% (year-on-year), supported by domestic demand.

According to Dharma Mitra, with the government's policy direction becoming clearer, the company is optimistic that the property market will continue to show positive growth. These initiatives not only reflect the government's commitment to expanding housing development but also strengthen the role of the property sector as a key pillar of the national economy.

“The company has also demonstrated its commitment to enhancing marketing efforts by launching the Super Cluster Great Britania development at Modernland Cilejit in early 2024, which also marks the success of the first phase of sales with more than 200 units sold,” said Dharma Mitra during his presentation on the company’s 2024 performance.

Dharma Mitra added that this year, the company is also developing the Jakarta Garden City area through the construction of the Vastu @Garden City Club House, located in the Vastu @Garden City Cluster, which will be the second clubhouse built in the Jakarta Garden City township.

“This exclusive facility, covering 3,500 square meters, is designed to support various sports, recreational activities, and serve as a socializing space for residents of the Vastu @Garden City Cluster in Jakarta Garden City,” explained Dharma Mitra.

PT Modernland Realty Tbk., through its subsidiary PT Mitra Sindo Sukses, has also introduced the Mayapada Hospital Jakarta Timur. This collaboration with Mayapada Healthcare or PT Sejahteraraya Anugrahjaya Tbk. is being developed on a 1.5-hectare plot in the Main Boulevard area of Jakarta Garden City.

Following the development of Mayapada Hospital Jakarta Timur, the company also introduced the latest type of homes in the Mahakam The Signature Cluster, called Sapphire and Topaz. These exclusive homes, consisting of 48 units, are being built on a 2.1-hectare plot. The cluster features a contemporary design concept that integrates with nature.

The company is confident that these exclusive facilities will further increase the appeal of Jakarta Garden City as a high-quality residential area and provide added value for the people living and working there.

Financial Performance

In his presentation on the company’s financial performance, Herman, Director of PT Modernland Realty Tbk., reported that by Q3 2024, the company had recorded a revenue of IDR 712.25 billion, a decrease of 9.01% or IDR 70.51 billion compared to the same period in the previous year, which was IDR 782.76 billion.

Meanwhile, the operating profit amounted to IDR 78.32 billion, which represents a decrease of IDR 78.93 billion or 50.19% compared to the same period in the previous year, which was IDR 157.25 billion. This decline was mainly due to a decrease in revenue from the industrial segment.

“As of September 30, 2024, the company recorded a net loss of IDR 165.98 billion, an increase of IDR 102.65 billion or 162.08% compared to the net loss in the same period last year, which was IDR 63.33 billion,” said Herman.

Marketing Performance and Outlook for 2025

By Q3 2024, the company achieved marketing sales of IDR 855 billion. This achievement represents 40% of the non-bulk sales target. This was shared by Fetrizal Bobby Heryunda, the company’s Director.

Fetrizal Bobby Heryunda stated that the residential segment recorded sales of IDR 648 billion, an 18% increase compared to the previous quarter, but a 21% decrease compared to the same period last year. Sales were mainly driven by Jakarta Garden City, followed by two other prominent projects, Modernland Cilejit and Kota Modern. Other contributions to marketing sales came from the industrial segment, which recorded IDR 79 billion, growing 2% compared to the same period last year. Additionally, the hospitality, golf and country club, and other segments contributed IDR 128 billion, a 17% increase compared to the previous year.

Fetrizal Bobby Heryunda expressed optimism about the prospects for residential property sales, especially landed homes and commercial areas, which will remain the backbone of the domestic property industry. This is further supported by policies introduced by the government, as well as the establishment of the Ministry of Housing and Settlements, aimed at strengthening inter-agency coordination, creating regulations, and addressing housing shortages while ensuring appropriate financing programs for the public. On the other hand, as part of its development strategy focusing on innovation and sustainability, the company remains committed to launching property products across various market segments.

“We will present new designs and concepts that are fresher and in line with market trends, while still considering consumer purchasing power so that our products are well received in this dynamic market. Moreover, we continue to prioritize quality and excellence in every project, ensuring that every product we offer provides added value for consumers and investors,” said Fetrizal Bobby Heryunda confidently.

In every step, he emphasized, the company strives to present property solutions that not only meet market demands but also become long-term investments that are profitable. With these strategic steps, the company is confident in sustaining growth and contributing positively to the development of the property sector in Indonesia, while creating better living and business spaces for the community.

ModernCikande Becomes the Top Choice for Investors

Meanwhile, Pascall Wilson, the company’s Director, stated that with its strategic location, adequate infrastructure, availability of skilled labor, diverse supporting facilities, attention to environmental aspects, and sustainable development concepts, the company is optimistic that the ModernCikande Industrial Estate will continue to be the primary choice for investors and business players to develop and expand their operations in the western corridor of Greater Jakarta.

As information, the ModernCikande industrial area in Serang, Banten, is fully integrated with quality infrastructure and various supporting facilities. Of the total area of 3,175 hectares, approximately 40% has been developed, with a remaining land bank of around 1,900 hectares.

Currently, ModernCikande is home to more than 350 companies, both local and multinational, in various industries. The most prominent sectors in this area are food and beverages, followed by chemicals, steel, metal products & smelters, and building materials & household goods. This area also provides industrial plots for food and beverage products, pharmaceuticals, and cosmetics.

Demand for industrial land, particularly for data centers, automotive, and logistics, continues to rise, especially in the eastern corridor of Greater Jakarta. This presents a positive catalyst for the company, given its vast land holdings, while the availability of industrial land in the eastern corridor of Greater Jakarta is increasingly limited. "The company is also exploring opportunities with various investors in the automotive, logistics, and industrial land development sectors, particularly in the eastern Jakarta area, where we own potential land that can meet the growing market demand," said Pascall Wilson.

He further stated that the company currently has land zoned for industrial and residential use in the Bekasi area, which is strategically located with direct access to the operational JORR 2 toll road. Bekasi will be one of the company’s key development focuses in the coming years, along with the improvement of infrastructure and connectivity.

"The active role of the government in supporting the development of this area is key to attracting potential investors, both domestic and foreign, to invest and expand their businesses in the eastern corridor of Greater Jakarta," concluded Pascall Wilson.