Roxy-Pacific's Q3 profit jumps 42% to $8.9m

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Published November 4, 2010

Roxy-Pacific's Q3 profit jumps 42% to $8.9m

Surge in property units' revenue boosts group turnover by 41%

By UMA SHANKARI


PROPERTY group Roxy-Pacific Holdings reported a 42 per cent jump in net profit to $8.9 million for the third quarter of the year - from $6.3 million a year ago - as it saw more revenue from its property development business.

Revenue grew 41 per cent to $53.1 million for the three months ended Sept 30, from $37.6 million in Q3 2009.

The increased turnover was a result of a 44 per cent increase in revenue from Roxy-Pacific's property development business as well as an 86 per cent surge in revenue from its property investment unit.

The group's hotel segment also reported a 31 per cent increase in revenue as both the average occupancy rate and average room rate climbed. Earnings per share for Q3 2010 rose to 1.39 cents from 0.98 cents.

Roxy-Pacific is optimistic about the outlook for Singapore's property market.

'Although property market has cooled down recently following the new government measures as buyers and sellers adopt a wait-and-see attitude, we believe that genuine demand for residential properties remains robust supported by the strong economy and job market,' said Roxy-Pacific chief executive Teo Hong Lim.

The group launched four residential projects in Q3. It said yesterday that Haig 162 and Studios @ Tembeling are fully sold, while Straits Residences and Jupiter 18 are more than 85 per cent sold.

Roxy-Pacific also acquired Toh Tuck Apartment in an en bloc sale for $33.9 million in August through a 45 per cent-owned associate company.

Mr Teo also said that demand for Roxy-Pacific's hotel rooms should continue to be strong in Q4 and 2011.

Boosted by strong sales from the four newly launched projects, the group's balance progress billings stand at $241.9 million and will be recognised from Q4 2010 to 2012.

This will provide Roxy-Pacific with an ample buffer and place it in a good position to seize opportunities, Mr Teo said. But he added it will continue to exercise prudence as it explores these opportunities.

Roxy-Pacific shares closed unchanged at 38 cents yesterday.