Hiap Hoe's home sales soar amid 'tepid' market

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http://www.straitstimes.com/premium/money/story/hiap-hoes-home-sales-soar-amid-tepid-market-20131105

Hiap Hoe's home sales soar amid 'tepid' market

Published on Nov 05, 2013

By Melissa Tan


DEVELOPER Hiap Hoe will step up marketing efforts to move units at its residential projects amid a "tepid" market, it said yesterday.

Its remarks came as it posted a 149.8 per cent increase in third-quarter earnings to $33.3 million, thanks to higher revenue from home sales.

Revenue for the three months to Sept 30 soared 98.6 per cent to $81.1 million from the same period a year earlier.

Hiap Hoe said this increase was due to progressive revenue recognition from the sale of residential projects.

It recognised revenue of $80.5 million, much higher than the $24.9 million recognised in the corresponding period a year ago.

These projects included the 32-unit Signature at Lewis in Tanglin, 61-unit Skyline 360 in River Valley and 132-unit Waterscape at Cavenagh in Newton. All three are freehold.

Signature at Lewis was completed in 2011 and Skyline 360 last year, while Waterscape at Cavenagh is still under construction.

None of them is fully sold, according to Urban Redevelopment Authority data.

Hiap Hoe also said yesterday that it has begun building its industrial project at Kallang Pudding. It also noted that the hotels within its $300 million Zhongshan Park integrated development in Balestier Road are fully operational.

Hiap Hoe embarked on its overseas expansion in the third quarter with a foray into Australia.

It bought two developments in Melbourne in September, which it said could be redeveloped into integrated projects.

It also inked a partnership with Australian construction company Probuild Construction last month.

The firm said it would "continue to adopt a prudent approach in its land acquisition programme (in Singapore) to ensure that it remains well positioned in a potentially challenging environment".

Earnings per share for the quarter came in at 7.07 cents, up from 2.83 cents the preceding year. Net asset value per share was 78.71 cents as at Sept 30, up from 64.94 cents as at Dec 31 last year.

Hiap Hoe shares closed flat at 81.5 cents yesterday.

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http://www.businesstimes.com.sg/premium/companies/others/hiap-hoe-q3-net-swells-333m-20131105

Published November 05, 2013

Hiap Hoe Q3 net swells to $33.3m

S'pore residential projects give boost to earnings

By Felda Chay [email protected]


PROGRESSIVE revenue recognition from three residential projects helped property group Hiap Hoe to more than double its third quarter net profit to $33.3 million from $13.3 million a year ago.

Earnings per share for the three months ended Sept 30 rose to 7.07 cents from 2.83 cents last year.

Revenue jumped 98.6 per cent to $81.1 million. The increase was largely driven by $80.5 million in progressive revenue recognition from the sale of residential projects Signature at Lewis, Skyline 360 and Waterscape at Cavenagh, compared to the $24.9 million that was recognised a year ago.

Hiap Hoe said of its outlook: "As the Singapore's property sector is expected to remain challenging in the near-term, the group will continue to step up its marketing efforts to drive sales for its remaining unsold residential units."

It added that it will "continue to adopt a prudent approach in its land acquisition programme" in Singapore, and will "continue to evaluate opportunities by seeking well located land sites and quality completed properties to strengthen its regional property portfolio".

During the quarter in August, Hiap Hoe made its maiden foray overseas, snapping up three developments over two months in Melbourne. One is a 3,795 square metre site in inner Melbourne that cost A$28.8 million (S$34 million), where it plans to develop a 425-unit residential-hospitality project.

The second is a A$43.8 million commercial building in Melbourne's central business district (CBD), while the third is a a A$105 million mixed use retail and office asset, also in Melbourne's CBD.

It is rolling out a tender and selection process this month for two hotel operators for its planned hotels in Melbourne.

The group's landmark integrated hotels-cum-commercial development, Zhongshan Park Integrated Development, is also fully operational and is expected to contribute to its recurring income stream from Q4 onwards. The office block is fully leased, while the retail mall is over 90 per cent leased, it said.

Said Teo Ho Beng, Hiap Hoe's executive chairman and CEO: "Moving forward, we will continue to evaluate opportunities in Singapore and the region, so as to identify well-located land sites with strong redevelopment potential and quality assets to grow our portfolio of investment assets and generate attractive returns for our stakeholders."

For the nine-month period, net profit rose 65.2 per cent to $72.8 million. Revenue was 58.1 per cent higher at $191.7 million.

Hiap Hoe shares closed flat at 81.5 cents yesterday.