mr funny
22-02-11, 17:42
http://www.businesstimes.com.sg/sub/companies/story/0,4574,427064,00.html?
Published February 22, 2011
HPL quadruples net profit to $140.3m
Bottom line boosted by fair value gains on properties; revenue dips 0.2%
By TEH SHI NING
HOTEL Properties Limited's (HPL) full-year net profit has almost quadrupled, thanks to better results from associates and fair value gains on investment properties.
http://www.businesstimes.com.sg/mnt/media/image/launched/2011-02-22/BT_IMAGES_TSHOTEL22-8WC.jpg
Weaving in: HPL said it has started to recognise profit from The Interlace - the Alexandra Road project that it is developing with CapitaLand and another partner
Net profit surged to $140.3 million for the year ended Dec 31 from $35.2 million a year ago. This was despite a slight 0.2 per cent drop in revenue to $442.1 million for the period from $443.2 million the previous year.
HPL's board of directors yesterday declared a special dividend of three cents a share, on top of a final one-tier tax-exempt ordinary cash dividend of two cents a share.
Earnings per share came to 27.78 cents for FY10, almost four times FY09's 6.99 cents. Net asset value for the group rose to $2.66 from $2.42.
The group said yesterday that the dip in revenue was due to lower turnover from its properties division, with the completion of The Met condo development.
This had offset higher revenue from its hotels and resorts in Singapore and Maldives, HPL said.
During the year, the group had disposed of its interest in a joint venture company that owns a Shanghai mixed-use development for a gain of $95 million.
These proceeds led to higher cash and lower bank borrowings for the group, as it has balance proceeds that it collected from those which purchased units at The Met.
HPL's cash and cash equivalents stood at $83.3 million as at Dec 31.
Performance of HPL's associates and jointly controlled entities was also greatly improved.
The group's share of results from these turned around from a loss of $5.75 million for FY09 to a profit of $11.9 million for FY10.
The group said that it had started to recognise profit from The Interlace - the Alexandra Road project that HPL is developing jointly with CapitaLand and another partner - while Four Seasons Resort Seychelles and Hard Rock Hotel Penang brought in better results compared to a year earlier.
HPL also saw fair value gains, including on investment properties of associates, of $26.1 million, compared to a loss of $2.7 million for 2009.
The group said that the recent anti-speculation measures had affected market sentiment.
But 'demand from properties in good locations is expected to remain steady from the genuine home buyers and long-term investors'.
It will continue to recognise profit from The Interlace condominium development and commence profit recognition from d'Leedon and Tomlinson Heights this year.
As for hotels and resorts, HPL expects strong contributions from the division, even though 'inflation and the strengthening of the Singapore dollar may pose challenges ahead'.
HPL shares slipped nine cents to close at $2.49 yesterday, before its results were announced.
Published February 22, 2011
HPL quadruples net profit to $140.3m
Bottom line boosted by fair value gains on properties; revenue dips 0.2%
By TEH SHI NING
HOTEL Properties Limited's (HPL) full-year net profit has almost quadrupled, thanks to better results from associates and fair value gains on investment properties.
http://www.businesstimes.com.sg/mnt/media/image/launched/2011-02-22/BT_IMAGES_TSHOTEL22-8WC.jpg
Weaving in: HPL said it has started to recognise profit from The Interlace - the Alexandra Road project that it is developing with CapitaLand and another partner
Net profit surged to $140.3 million for the year ended Dec 31 from $35.2 million a year ago. This was despite a slight 0.2 per cent drop in revenue to $442.1 million for the period from $443.2 million the previous year.
HPL's board of directors yesterday declared a special dividend of three cents a share, on top of a final one-tier tax-exempt ordinary cash dividend of two cents a share.
Earnings per share came to 27.78 cents for FY10, almost four times FY09's 6.99 cents. Net asset value for the group rose to $2.66 from $2.42.
The group said yesterday that the dip in revenue was due to lower turnover from its properties division, with the completion of The Met condo development.
This had offset higher revenue from its hotels and resorts in Singapore and Maldives, HPL said.
During the year, the group had disposed of its interest in a joint venture company that owns a Shanghai mixed-use development for a gain of $95 million.
These proceeds led to higher cash and lower bank borrowings for the group, as it has balance proceeds that it collected from those which purchased units at The Met.
HPL's cash and cash equivalents stood at $83.3 million as at Dec 31.
Performance of HPL's associates and jointly controlled entities was also greatly improved.
The group's share of results from these turned around from a loss of $5.75 million for FY09 to a profit of $11.9 million for FY10.
The group said that it had started to recognise profit from The Interlace - the Alexandra Road project that HPL is developing jointly with CapitaLand and another partner - while Four Seasons Resort Seychelles and Hard Rock Hotel Penang brought in better results compared to a year earlier.
HPL also saw fair value gains, including on investment properties of associates, of $26.1 million, compared to a loss of $2.7 million for 2009.
The group said that the recent anti-speculation measures had affected market sentiment.
But 'demand from properties in good locations is expected to remain steady from the genuine home buyers and long-term investors'.
It will continue to recognise profit from The Interlace condominium development and commence profit recognition from d'Leedon and Tomlinson Heights this year.
As for hotels and resorts, HPL expects strong contributions from the division, even though 'inflation and the strengthening of the Singapore dollar may pose challenges ahead'.
HPL shares slipped nine cents to close at $2.49 yesterday, before its results were announced.