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Published August 13, 2009

Allgreen Q2 net up 36% to $23.4m


ALLGREEN Properties saw net profit improve 36 per cent to $23.4 million in the second quarter ended June 2009 from a year earlier. Revenue rose 14 per cent to $84.6 million against Q2 2008, mainly due to higher income from development properties as a result of increased progress sales recognition compared with the previous period.

Earnings per share increased to 1.47 cents from 1.08 cents. No interim dividend has been declared. H1 revenue rose 2 per cent to $165.4 million. While there was a decent increase in revenue from development properties as a result of increased progress sales recognition, this was offset by the poorer performance of the hotel segment, which suffered a drop in both occupancy and room rates due to the weak economy. Still, H1 2009 net profit increased 52 per cent to $52.7 million.

Allgreen said April and May 2009 marked the start of an improvement in sentiment as buyers responded positively to favourable pricing by developers for new launches and relaunches.

'Allgreen benefited from this improvement with more units sold in various developments in Q2 2009 versus Q1 2009,' it said. 'We also took the opportunity to launch One Devonshire in June, with 148 units out of 152 sold to date. On Aug 3 we relaunched the 235-unit condominium Viva at Suffolk Walk, with 162 units sold to date. Allgreen shares closed three cents down at $1.15 yesterday.