http://www.businesstimes.com.sg/arch...1-41m-20140429

Published April 29, 2014

Ho Bee Land's Q1 profit plunges 92.1% to $4.1m

Residential market still facing strong challenges, says CEO

By Mindy Tan

[email protected] @MindyTanBT


HO BEE Land's first-quarter net profit tumbled 92.1 per cent to $4.1 million from $52.1 million a year ago.

Revenue slid 71.9 per cent, from $60.8 million to $17.1 million, for the three months ended March 31. This was primarily due to a lack of recognition of revenue for development projects as there were no new sales in the quarter and all units previously sold had been fully recognised at the end of last year, the property developer said yesterday.

In addition, the group reported a gain of $47 million on the sale of an available-for-sale investment in the first quarter of last year.

Chua Thian Poh, chairman and chief executive officer of the group, cautioned that the residential property market in Singapore still faced strong challenges. In line with the group's strategy, the group acquired another commercial building in London, 1 St Martin's Le Grand, in March.

Together with Rose Court in London and The Metropolis in Singapore, rental income of the three commercial properties is expected to contribute significantly to the group's earnings for the next few years.

Rental income from all of the group's industrial and commercial properties rose from $2.7 million in the first quarter of last year to $15.9 million. This was mainly contributed by the rentals of The Metropolis and Rose Court.

Rental income from the group's commercial and industrial properties accounted for 93 per cent of total turnover. The remaining 7 per cent was contributed by rentals of residential properties.

For the period under review, earnings per share were 0.6 cent, down sharply from 7.7 cents a year ago. Net asset value (NAV) per share at the group level was $3.47 as at end-March, versus $3.48 as at end-December.

Ho Bee ended eight cents lower at $2.32 yesterday.