November 3, 2009 Tuesday

Allgreen profits surge to $74m

ALLGREEN Properties has joined the growing list of developers to post quarterly earnings, buoyed by the continuing residential property boom.

Net profit for the quarter ended Sept 30 surged 137.27 per cent to $74 million, primarily fuelled by a higher contribution from Allgreen's property development segment.

Revenue rose 158.6 per cent to $293.1 million - up from $113.4 million for the same period a year earlier - chiefly as a result of sales at its new project launches.

These included One Devonshire in Devonshire Road, a 152-unit freehold condo that was over 95 per cent sold within two weeks of its launch in June.

Sales of the developer's 235-unit Viva condominium in Suffolk Walk, launched in August, also contributed to the buoyant revenue.

Allgreen, which owns Great World City as well as Tanglin Mall, said its two retail spaces enjoyed higher occupancies and rental rates.

Occupancy rates at the offices of Great World City were slightly lower, but the asset enjoyed higher rental rates, said Allgreen. However, the increases were 'offset by the weaker performances of hotel and serviced apartments'.

'The improved sentiment in the property market that started in April/May continued throughout the third quarter,' reported the group.

Allgreen expects its financial performance this year to be better than last year's, as reflected in the overall property sector, given that many developers have launched new projects and have relaunched existing projects at very competitive prices.

Earnings per share were 4.65 cents, up from 1.96 cents for the same quarter last year. Net asset value stood at $1.47 per share as of Sept 30, compared with $1.41 in December.

For the first nine months of the year, net profit rose 92.39 per cent to $126.7 million, while revenue gained 66.5 per cent to $458.5 million.

Ahead of its earnings results, Allgreen shares lost two cents, or 1.74 per cent, to close at $1.13. The stock is up 162.79 per cent so far this year, well ahead of the Straits Times Index's gain of 50.18 per cent.