Oxley's Bizhub project helps firm rake in record earnings

[reporter2]

http://www.straitstimes.com/premium/money/story/oxleys-bizhub-project-helps-firm-rake-record-earnings-20131114

COMPANIES

Oxley's Bizhub project helps firm rake in record earnings

Published on Nov 14, 2013

By Melissa Tan


PROPERTY developer Oxley Holdings yesterday posted record-high quarterly earnings, thanks in large part to its Oxley Bizhub industrial development.

Net profit of $250.8 million for the first quarter was about 38 times the $6.6 million earned in the preceding year. Revenue for the three months to Sept 30 also leapt to $686 million, a surge of 1,271 per cent year-on-year.

Oxley said in a statement yesterday that the jump was mainly due to revenue recognition from its 728-unit industrial development Oxley Bizhub.

It also recognised revenue from progress made in the construction of 10 projects in Singapore. These are Viva Vista, RV Point, Loft @ Holland, Vibes @ Kovan, Devonshire Residences, Suites @ Braddell, Vibes @ East Coast, The Promenade @ Pelikat, Vibes @ Upper Serangoon and Presto @ Upper Serangoon.

Oxley executive chairman and chief executive Ching Chiat Kwong told The Straits Times in an interview yesterday that the company would likely launch its Floraview/Floravista mixed development project in Yio Chu Kang by the end of this year.

He added that it was hoping to launch its project in east London within six to eight months, subject to approval. Oxley paid £200 million (S$398 million) for the Royal Wharf plot in the Docklands area of east London earlier this month.

The firm has been on an overseas acquisition spree since May, with ventures in Malaysia, Cambodia and China.

However, Mr Ching said yesterday that Oxley would now focus on executing projects rather than further acquisition, though he did not rule out expansion in regions such as Europe.

The group's earnings per share was 8.51 cents for the quarter, up from 0.25 cent the preceding year. Net asset value per share was 16.61 cents as at Sept 30, about double the 8.1 cents as at June 30.

Citing its strong performance, Oxley declared an interim one-tier, tax-exempt cash dividend of three cents per ordinary share.

Its share price fell two cents to 43.5 cents yesterday.

[email protected]

[reporter2]

http://www.businesstimes.com.sg/premium/top-stories/oxley-holdings-q1-profit-balloons-2508m-20131114

Published November 14, 2013

Oxley Holdings' Q1 profit balloons to $250.8m

Strong performance largely driven by revenue recognition from Oxley Bizhub

By Mindy Tan [email protected]


[SINGAPORE] Formerly known as the king of shoebox units, Oxley Holdings has made it to the big boys' table, with net profit for the first quarter ended September surging to a record $250.8 million, from just $6.6 million a year ago.

For the quarter under review, revenue soared to $686 million, compared with $50 million a year ago.

On the back of its sterling results, Oxley has declared an interim one-tier tax exempt cash dividend of three cents per ordinary share, compared with 0.11 cents previously. This amounts to about $88.4 million, and represents a dividend payout ratio of about 35 per cent. The date of the dividend payout will be announced at a later date.

Oxley's strong performance was largely driven by revenue recognition, based on the completion of construction method, from its 728-unit industrial development, Oxley Bizhub. Revenue was also recognised, using the percentage of completion method, from progress made in the construction of 10 mixed-residential projects.

Oxley has since started looking overseas for its next phase of growth.

Its latest acquisition, which marks its first foray into London and also its most ambitious, is the acquisition of three freehold and three leasehold adjacent parcels of land in London's Royal Docks area.

The Royal Wharf development site, which was purchased at £200 million (S$397.4 million), yields an effective gross area of about 363,000 square metres.

Oxley has said that it intends to develop the parcels, which stretch about 500 metres facing the River Thames, into more than 3,400 homes, along with a mix of commercial, retail, leisure and educational facilities.

This comes hot on the heels of a ramp-up in overseas acquisitions over the quarter. In July, Oxley unveiled separate acquisitions of three plots of land in Cambodia. Taking into account a joint venture to develop another plot, this brings the total number of pipeline projects in Cambodia to four.

In China, Oxley entered an agreement to acquire a 10 per cent stake in GD Capital, which will ultimately hold the land use rights for two plots of land of 102,506 sqm and 80,599 sqm respectively, in Xuancheng Economic and Technical Development Zone, Anhui Province. Under the deal, Oxley will also be able to participate, with up to 30 per cent interest, in the development of five other land parcels in the same economic zone.

The company has a further five projects in Malaysia spread across Selangor, Johor Bahru, Kuala Lumpur and Penang. It marked its first overseas acquisition on May 29, when it bought a Malaysia-incorporated company that clinched the rights for a mixed development site in Kuala Lumpur. This brings its total pipeline of overseas projects to 12.

While it will continue to seek out local opportunities, Oxley said that it will be adopting a prudent approach towards its local land acquisition strategy for financial year 2014. This is in light of the property cooling measures introduced, which have continued to soften overall demand in the local residential market.

Oxley intends to develop its investment properties at Stevens Road and Tampines Industrial Crescent. It will closely monitor the Singapore market for an opportune time to launch its three remaining pipeline residential projects at Oxley Rise, Ang Mo Kio Street 66 and Joo Chiat Road, it added.

As at Sept 30, total shareholder's equity stood at $524.8 million, compared with $288.5 million as at June 30. Net asset value per share was 16.6 cents, versus 8.1 cents a year ago, and earnings per share were 8.51 cents, versus 0.25 cents a year ago.

The counter closed two cents lower at 43.5 cents, before it released its results.