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26-02-14, 21:34
http://www.businesstimes.com.sg/archive/saturday/premium/companies/others/hiap-hoe-heeton-post-q4-profit-falls-20140222
Published February 22, 2014
Hiap Hoe, Heeton post Q4 profit falls
By Jamie Lee [email protected]
TWO listed property companies yesterday signalled caution over the Singapore property market amid weaker fourth-quarter results, and have indicated more expansion opportunities overseas.
In a statement to announce its quarterly earnings, Hiap Hoe said that the group expects Singapore's real estate market to remain soft. It will also continue its expansion into Australia, following its recent acquisition of an investment property in Perth.
The property firm's net profit for the three months ended Dec 31, 2013, fell 48 per cent to $7.17 million from a year ago, dragged by higher expenses. The earnings translated to an earnings per share of 1.52 cents, compared to 2.93 cents a year ago.
In particular, administrative expense for the quarter jumped to $15 million from $1.8 million due to acquisition costs from snapping up land and properties in Melbourne, Australia.
The fall in profit came despite a strong surge in revenue. Sales for the quarter about doubled to $49 million from $24.4 million. This was mainly boosted by progressive revenue recognition from the sale of residential project Waterscape at Cavenagh.
But full-year earnings were up 38.2 per cent at a record $80 million, boosted by stronger revenue. Hiap Hoe has proposed a final dividend of 0.8 of a cent per share.
As for Heeton Holdings, it said that it will "monitor the market" for the most appropriate time to launch its development projects in Singapore.
But with its acquisition of the Enterprise Hotel in London, the group is looking to enhance these hospitality assets through refurbishment, and seek out overseas expansion opportunities.
Net profit for the three months ended Dec 31, 2013 slumped 85 per cent to $6.1 million as revenue fell 44 per cent to $13.2 million.
Earnings per share came to 2.26 cents, down from 18.57 cents.
For the full year, Heeton's net profit fell 65 per cent to $18.4 million. The group recorded a $5.3 million fair value gain on investment properties for FY2013, considerably lower than the $42.24 million fair value gain recorded for FY2012.
It has proposed a final dividend of 1.3 cents per share.
Shares of Hiap Hoe rose 5.4 per cent yesterday to 88.5 cents, while shares of Heeton fell 2.29 per cent to 64 cents.
Published February 22, 2014
Hiap Hoe, Heeton post Q4 profit falls
By Jamie Lee [email protected]
TWO listed property companies yesterday signalled caution over the Singapore property market amid weaker fourth-quarter results, and have indicated more expansion opportunities overseas.
In a statement to announce its quarterly earnings, Hiap Hoe said that the group expects Singapore's real estate market to remain soft. It will also continue its expansion into Australia, following its recent acquisition of an investment property in Perth.
The property firm's net profit for the three months ended Dec 31, 2013, fell 48 per cent to $7.17 million from a year ago, dragged by higher expenses. The earnings translated to an earnings per share of 1.52 cents, compared to 2.93 cents a year ago.
In particular, administrative expense for the quarter jumped to $15 million from $1.8 million due to acquisition costs from snapping up land and properties in Melbourne, Australia.
The fall in profit came despite a strong surge in revenue. Sales for the quarter about doubled to $49 million from $24.4 million. This was mainly boosted by progressive revenue recognition from the sale of residential project Waterscape at Cavenagh.
But full-year earnings were up 38.2 per cent at a record $80 million, boosted by stronger revenue. Hiap Hoe has proposed a final dividend of 0.8 of a cent per share.
As for Heeton Holdings, it said that it will "monitor the market" for the most appropriate time to launch its development projects in Singapore.
But with its acquisition of the Enterprise Hotel in London, the group is looking to enhance these hospitality assets through refurbishment, and seek out overseas expansion opportunities.
Net profit for the three months ended Dec 31, 2013 slumped 85 per cent to $6.1 million as revenue fell 44 per cent to $13.2 million.
Earnings per share came to 2.26 cents, down from 18.57 cents.
For the full year, Heeton's net profit fell 65 per cent to $18.4 million. The group recorded a $5.3 million fair value gain on investment properties for FY2013, considerably lower than the $42.24 million fair value gain recorded for FY2012.
It has proposed a final dividend of 1.3 cents per share.
Shares of Hiap Hoe rose 5.4 per cent yesterday to 88.5 cents, while shares of Heeton fell 2.29 per cent to 64 cents.