Published February 27, 2009

Plunge in fair value gain hits Allgreen


ALLGREEN Properties yesterday reported a net profit of $67.4 million for the year ended Dec 31, 2008 - down 86.34 per cent from $493.5 million the preceding year.

This came as fair value gain on investment properties dived to $8.35 million from 2007's $367.4 million.

Revenue fell 37.8 per cent to $353.7 million, from $568.8 million in 2007. There was also a $16.76 million write-back of provision for diminution of the value of development properties, compared with $56.76 million the year before.

Some provisions were made to write down the land values of two residential properties that have not been launched.

A dividend of two cents per share has been recommended.

The fall in group revenue was due to a drop in revenue from development properties. 'The number of units sold during 2008 was significantly lower than in the previous corresponding period as a result of the subdued market,' it said.

Total revenue from development sales was $185.87 million, down from $421.16 million in 2007. Allgreen's investment property and hotel segments performed satisfactorily in 2008, with better rents and room rates.

At Dec 31, 2008, gearing was 0.45 times with net borrowings at $1,137.6 million, versus 0.3 times with net borrowings at $743.6 million a year earlier. Allgreen said the increase in borrowing was due mainly to overseas investments and purchase of development sites in Singapore.

Earnings per share for 2008, after fair value gain on investment properties, came in at 4.24 cents, down from 31.40 cents in 2007.

Allgreen's share price closed at 44.5 cents yesterday, up half a cent.