reporter2
04-06-14, 15:01
http://www.businesstimes.com.sg/archive/wednesday/premium/companies/others/cooling-measures-hit-bukit-sembawangs-q4-earnings-20140528
Published May 28, 2014
Cooling measures hit Bukit Sembawang's Q4 earnings
By lee meixian
[email protected] @LeeMeixianBT
PROPERTY cooling and loan restriction measures have dented Bukit Sembawang Estates' fourth-quarter bottom line.
The residential property developer reported a 29.1 per cent decline in net pro-fit to $18.2 million for the three months ended March 31, 2014. This translates to earnings per share of 7.04 cents, down from 9.93 cents a year ago.
This was despite revenue rising 94.5 per cent to $89.5 million.
For the full year, net profit dipped 3 per cent to $111.3 million, on the back of a 15.1 per cent rise in revenue to $408.3 million.
The higher turnover was a result of higher recognition on its development projects that have obtained their temporary occupation permit.
But earnings fell because of the recognition of "foreseeable loss" on its Paterson Collection development project, amounting to $17.5 million, as a result of the weakening property market, especially in the high-end segment.
The developer recommended a final dividend of four cents per share and a special dividend of 12 cents per share for FY2014, payable on Aug 15. For the previous year, the dividends were four cents and 11 cents, respectively.
"The cumulative effects of the Singapore government's property cooling measures and implementation of the Total Debt Servicing Ratio rules for housing loans have dampened the demand and the pricing of private residential properties," it said. "The market conditions for landed and high-end residential property remain challenging and this will adversely affect the group's sales performance in the current year."
Its counter finished five cents lower at $6.02 yesterday.
Published May 28, 2014
Cooling measures hit Bukit Sembawang's Q4 earnings
By lee meixian
[email protected] @LeeMeixianBT
PROPERTY cooling and loan restriction measures have dented Bukit Sembawang Estates' fourth-quarter bottom line.
The residential property developer reported a 29.1 per cent decline in net pro-fit to $18.2 million for the three months ended March 31, 2014. This translates to earnings per share of 7.04 cents, down from 9.93 cents a year ago.
This was despite revenue rising 94.5 per cent to $89.5 million.
For the full year, net profit dipped 3 per cent to $111.3 million, on the back of a 15.1 per cent rise in revenue to $408.3 million.
The higher turnover was a result of higher recognition on its development projects that have obtained their temporary occupation permit.
But earnings fell because of the recognition of "foreseeable loss" on its Paterson Collection development project, amounting to $17.5 million, as a result of the weakening property market, especially in the high-end segment.
The developer recommended a final dividend of four cents per share and a special dividend of 12 cents per share for FY2014, payable on Aug 15. For the previous year, the dividends were four cents and 11 cents, respectively.
"The cumulative effects of the Singapore government's property cooling measures and implementation of the Total Debt Servicing Ratio rules for housing loans have dampened the demand and the pricing of private residential properties," it said. "The market conditions for landed and high-end residential property remain challenging and this will adversely affect the group's sales performance in the current year."
Its counter finished five cents lower at $6.02 yesterday.