reporter2
19-08-14, 15:25
http://www.straitstimes.com/archive/tuesday/premium/money/story/ho-bee-land-gets-rent-boost-q2-20140812
Ho Bee Land gets rent boost in Q2
Turnover jumps to $26.8m, but net profit falls due to one-off gain in 2013
Published on Aug 12, 2014 1:13 AM
By Chia Yan Min
HIGHER rental income lifted turnover at Ho Bee Land in the second quarter, although net profit dipped owing to a one-off gain recorded last year.
The property group's earnings for the three months to June 30 came up to $12.2 million, 53.5 per cent lower than the corresponding period last year. This was due to a $25.9 million gain on the disposal of Hotel Windsor, which bumped up net profit in the second quarter of last year.
Turnover was boosted by higher revenue from investment properties and came in at $26.8 million, up from $6.1 million in the same period last year.
Rental income from industrial and commercial properties rose to $25.7 million, from $2.8 million last year.
This was mainly contributed by office block rent from The Metropolis in Buona Vista, and Rose Court and 1 St Martin's Le Grand in London.
Net profit for the half year was $16.3 million, down 79 per cent from the $78.4 million recorded in the previous year.
In addition to the sale of Hotel Windsor, the higher earnings in the first half of last year were also the result of a $47 million gain on the sale of investment interest in Chongbang Holdings in China, the company said in a statement yesterday.
Revenue amounted to $43.9 million in the first half of this year, compared with $66.9 million in the corresponding period last year, as there was no revenue recognition from development properties this year.
Chairman and chief executive Chua Thian Poh said that Singapore's real estate environment continues to be challenging, particularly the residential sector.
The Government has reiterated that it is still too early to relax property market cooling measures.
Notwithstanding these challenges, the property group is "beginning to see the fruition of the strategic decision to increase its portfolio of investment properties", said Mr Chua.
"With the completion of The Metropolis and the strategic acquisitions of Rose Court and 1 St Martin's Le Grand in London, the group now has a substantial stream of investment income that would underpin the group's earnings in the years to come," he added.
Earnings per share for the second quarter was 1.83 cents, down from 3.88 cents in the same period last year, while net asset value per share was $3.40 as at June 30 this year, from $3.48 as at Dec 31 last year.
Ho Bee Land shares closed one cent up at $2.20 yesterday. The results were released after the market close.
[email protected]
Ho Bee Land gets rent boost in Q2
Turnover jumps to $26.8m, but net profit falls due to one-off gain in 2013
Published on Aug 12, 2014 1:13 AM
By Chia Yan Min
HIGHER rental income lifted turnover at Ho Bee Land in the second quarter, although net profit dipped owing to a one-off gain recorded last year.
The property group's earnings for the three months to June 30 came up to $12.2 million, 53.5 per cent lower than the corresponding period last year. This was due to a $25.9 million gain on the disposal of Hotel Windsor, which bumped up net profit in the second quarter of last year.
Turnover was boosted by higher revenue from investment properties and came in at $26.8 million, up from $6.1 million in the same period last year.
Rental income from industrial and commercial properties rose to $25.7 million, from $2.8 million last year.
This was mainly contributed by office block rent from The Metropolis in Buona Vista, and Rose Court and 1 St Martin's Le Grand in London.
Net profit for the half year was $16.3 million, down 79 per cent from the $78.4 million recorded in the previous year.
In addition to the sale of Hotel Windsor, the higher earnings in the first half of last year were also the result of a $47 million gain on the sale of investment interest in Chongbang Holdings in China, the company said in a statement yesterday.
Revenue amounted to $43.9 million in the first half of this year, compared with $66.9 million in the corresponding period last year, as there was no revenue recognition from development properties this year.
Chairman and chief executive Chua Thian Poh said that Singapore's real estate environment continues to be challenging, particularly the residential sector.
The Government has reiterated that it is still too early to relax property market cooling measures.
Notwithstanding these challenges, the property group is "beginning to see the fruition of the strategic decision to increase its portfolio of investment properties", said Mr Chua.
"With the completion of The Metropolis and the strategic acquisitions of Rose Court and 1 St Martin's Le Grand in London, the group now has a substantial stream of investment income that would underpin the group's earnings in the years to come," he added.
Earnings per share for the second quarter was 1.83 cents, down from 3.88 cents in the same period last year, while net asset value per share was $3.40 as at June 30 this year, from $3.48 as at Dec 31 last year.
Ho Bee Land shares closed one cent up at $2.20 yesterday. The results were released after the market close.
[email protected]