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ajor developer Bumi Serpong Damai (BSD) enjoyed surging profits in 2014 despite a slight revenue drop, as an acquisition transaction carried out in the first half of last year helped boost the company'€™s net profit by more than 40 percent.

BSD, part of Sinar Mas Land, announced on Tuesday its full year 2014 result that showed its revenue dropped about 3 percent year-on-year (yoy) to Rp 5.57 trillion (US$423.41 million), from the Rp 5.74 trillion generated in 2013.

The company has repeatedly claimed the revenue decline was a result of inorganic income that it booked from joint ventures with Hongkong Land Holdings Ltd., Japan'€™s Aeon Mall and Dyandra in 2013, during which the company posted an 81.25 percent annual revenue increase.

Despite the modest decrease, however, the company registered a 42 percent increase in its bottom line, which soared from Rp 2.69 trillion in 2013 to Rp 3.82 trillion last year.

Liliana S. Bambang, an analyst at Mandiri Sekuritas, attributed the growth to Rp 1.7 trillion profit generated from acquiring Plaza Indonesia Realty.

'€œThe net profit growth is far above our initial prediction of 8 percent and consensus estimation of 27 percent,'€ she said in a published research paper.

The company acquired a 25.99 percent stake in property developer Plaza Indonesia Realty in a Rp 2.03 trillion transaction in April last year. The transaction gave BSD holding 34.22 percent ownership of Plaza Indonesia Realty.

Publicly listed Plaza Indonesia Realty, which operates a number of retail and hotel properties in the heart of Jakarta, saw its revenue increase 9.35 percent yoy to reach Rp 1.52 trillion last year, while its net profit surged significantly to Rp 358.24 billion, much higher than last year'€™s Rp 33.34 billion. The rise was thanks to lower losses from foreign exchange that the company registered in 2014, down by about Rp 187 billion from the previous year.

BSD '€” the operator of the country'€™s biggest township in Tangerang, Banten '€” hopes to see marketing sales growth of 15 percent this year to about Rp 7.5 trillion, from the Rp 6.5 trillion it pocketed last year, in line with expected growth in the country'€™s property industry.

The company is part of giant developer Sinar Mas Land, which is listed on Singapore'€™s stock exchange.

Sinar Mas Land currently has two firms listed on the IDX, the first of which is BSD and the other Duta Pertiwi, an operator of shopping malls under the brand ITC.

Duta Pertiwi, which also published its full-year financial statement on Tuesday, saw its revenue slightly decline from Rp 1.60 trillion in 2013 to Rp 1.54 trillion last year. Its net profit slumped by about 11 percent on an annual basis to
Rp 585.10 billion last year.

Sinar Mas Land is also looking to have another subsidiary, Puradelta Lestari, make its public debut this year, having carried out a mini expose with the IDX on Monday in preparation for its initial public offering (IPO).

IDX director for corporate listing Hoesen told reporters after the mini expose that the company aimed at floating between 10 and 20 percent of its enlarged capital to finance projects, adding that the developer was expected to have its IPO in June.

Puradelta Lestari is the developer behind Kota Delta Mas township in Cikarang, West Java, a 3,000-hectare joint venture with Japan-based Sojitz Corporation.