Roxy-Pacific Q3 profit doubles to $16 million
http://www.businesstimes.com.sg/prem...llion-20131108
Published November 08, 2013
Roxy-Pacific Q3 profit doubles to $16 million
By Kalpana Rashiwala [email protected]
A STRONG showing from its Singapore property development business gave a leg up to Roxy-Pacific's third-quarter report card.
The real estate and hotel group's net profit doubled to $16.1 million for Q3 ended Sept 30, 2013, from $8.2 million net earnings in the same year-ago period. Revenue rose 76 per cent to $76.7 million.
Revenue from property development more than doubled to $64.1 million in Q3 2013 from $30 million in Q3 2012. However, revenue from hotel ownership - the group owns Grande Mercure Roxy Hotel in Marine Parade - slipped 7 per cent to $12.2 million amid the highly competitive Singapore hotel market.
Property investment revenue dipped to around $390,000 in Q3 2013 from about $420,000 in Q3 2012, due mainly to the expiry of lease terms for some shop units in Roxy Square.
Share of profits from associates leapt to $2.7 million from about $700,000, chiefly on the back of profit recognition from jointventure projects Natura@Hillview, Eon Shenton, Haig 162 and Notinghill Suites in the July-September 2013 period.
"With balanced progress billings of $1.1 billion (more than 16 times the property development revenue recognised in Q3 2013); cash and cash equivalents amounting to $346.8 million as of Sept 30, 2013; and net debt to adjusted net asset value of 0.66 time, the group continues to be well positioned on seizing opportunities, whether in Singapore or overseas markets," said Teo Hong Lim, executive chairman and CEO of Roxy-Pacific.
Earlier this year, the group began venturing overseas, acquiring a site in Kuala Lumpur through a joint venture. The site's attributable gross floor area of 328,397 sq ft is more than half of its current landbank of 500,103 sq ft.
Earnings per share increased from 0.69 cent in Q3 2012 to 1.35 cents in Q3 2013. Net asset value per share stood at 23.86 cents at end-September 2013, up from 21.25 cents at end-December 2012. The counter closed unchanged yesterday at 60 cents. Roxy released its results after the stock market closed.
In the first nine months, the group's net profit rose 36 per cent to $47.4 million from nearly $35 million in the same period last year. Revenue climbed 48 per cent to $199.4 million.
