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06-05-16, 17:53
http://www.businesstimes.com.sg/companies-markets/property-developer-oxley-sparkles-in-march-quarter
Property developer Oxley sparkles in March quarter
Profit surges 329% to S$51.2m; revenue up 33% to S$202.6m
By Michelle Quah
[email protected]
@MichelleQuahBT
May 6, 2016
HOMEGROWN property developer Oxley Holdings racked up an impressive showing for the March quarter, reporting an over-300 per cent jump in net income attributable to its shareholders.
Its net profit surged to S$51.2 million for the three months ended March 31, 2016, up 329 per cent from the S$11.9 million recorded the year before.
Adding in sums attributable to non-controlling interests, Oxley's net profit was up 218 per cent to S$72.3 million, from S$22.7 million the year before.
The developer, which has a business presence in nine geographical markets, said the sterling performance was due to "substantial project revenue recognition from eight projects, a S$25.7 million gain on disposal of a long-term investment in Japan, and rental income from investment properties".
Its revenue for the quarter rose 33 per cent year on year to S$202.6 million, from S$152.2 million. It recognised revenues from sold units in eight residential and mixed-residential projects, among them Oxley Edge, The Promenade@Pelikat, Vibes@
Upper Serangoon and Devonshire Residences. Revenue was also recognised from its industrial development Eco-tech @ Sunview.
The group recorded the S$25.7 million gain from the sale of Chiba Port Square, located in the Chiba prefecture in Japan.
Its rental income for the quarter soared 487 per cent to S$2.8 million this year, from S$480,000 the year before. Oxley's earnings per share were 1.74 Singapore cents, up from 0.40 Singapore cents the year before. It declared an interim dividend of 0.40 Singapore cents per ordinary share for the quarter.
Oxley's executive chairman and CEO, Ching Chiat Kwong, said: "Our latest set of financial results shows that the group has gained momentum in driving growth, and also demonstrated its ability to moderate the cyclical impact on cash flow associated with the development of properties. Our disciplined approach to capital management allows us to lower our gearing, while also providing us with strong liquidity to capitalise on investment opportunities."
He said the group looks forward to its eight projects achieving completion within the next twelve months. "Looking ahead, we intend to grow and enhance our portfolio - where cash flow from sales of properties is complemented by high-quality recurring income generated by our investment properties. Our land acquisition strategy continues to be purchasing land at opportune times and at reasonable prices. These will allow us to reap the long-term appreciation potential of our properties."
Mr Ching also said that, with the impending launch of the group's overseas developments in the coming quarters and barring any unforeseen circumstances, "we are cautiously optimistic about the sales performance of these projects and we expect these new sales will help to maintain our current level of unbilled contract value".
Oxley shares closed at S$0.445, up 1.5 Singapore cents, on Thursday.
Property developer Oxley sparkles in March quarter
Profit surges 329% to S$51.2m; revenue up 33% to S$202.6m
By Michelle Quah
[email protected]
@MichelleQuahBT
May 6, 2016
HOMEGROWN property developer Oxley Holdings racked up an impressive showing for the March quarter, reporting an over-300 per cent jump in net income attributable to its shareholders.
Its net profit surged to S$51.2 million for the three months ended March 31, 2016, up 329 per cent from the S$11.9 million recorded the year before.
Adding in sums attributable to non-controlling interests, Oxley's net profit was up 218 per cent to S$72.3 million, from S$22.7 million the year before.
The developer, which has a business presence in nine geographical markets, said the sterling performance was due to "substantial project revenue recognition from eight projects, a S$25.7 million gain on disposal of a long-term investment in Japan, and rental income from investment properties".
Its revenue for the quarter rose 33 per cent year on year to S$202.6 million, from S$152.2 million. It recognised revenues from sold units in eight residential and mixed-residential projects, among them Oxley Edge, The Promenade@Pelikat, Vibes@
Upper Serangoon and Devonshire Residences. Revenue was also recognised from its industrial development Eco-tech @ Sunview.
The group recorded the S$25.7 million gain from the sale of Chiba Port Square, located in the Chiba prefecture in Japan.
Its rental income for the quarter soared 487 per cent to S$2.8 million this year, from S$480,000 the year before. Oxley's earnings per share were 1.74 Singapore cents, up from 0.40 Singapore cents the year before. It declared an interim dividend of 0.40 Singapore cents per ordinary share for the quarter.
Oxley's executive chairman and CEO, Ching Chiat Kwong, said: "Our latest set of financial results shows that the group has gained momentum in driving growth, and also demonstrated its ability to moderate the cyclical impact on cash flow associated with the development of properties. Our disciplined approach to capital management allows us to lower our gearing, while also providing us with strong liquidity to capitalise on investment opportunities."
He said the group looks forward to its eight projects achieving completion within the next twelve months. "Looking ahead, we intend to grow and enhance our portfolio - where cash flow from sales of properties is complemented by high-quality recurring income generated by our investment properties. Our land acquisition strategy continues to be purchasing land at opportune times and at reasonable prices. These will allow us to reap the long-term appreciation potential of our properties."
Mr Ching also said that, with the impending launch of the group's overseas developments in the coming quarters and barring any unforeseen circumstances, "we are cautiously optimistic about the sales performance of these projects and we expect these new sales will help to maintain our current level of unbilled contract value".
Oxley shares closed at S$0.445, up 1.5 Singapore cents, on Thursday.