Ho Bee Land Q2 earnings slump 80% to S$14.4m

Wed, Aug 07, 2019


PROPERTY company Ho Bee Land's second-quarter earnings plunged 79.9 per cent to S$14.4 million, owing to its share of losses from associates and jointly controlled entities - amounting to S$6.7 million, reversing from profits of S$28.3 million in the previous corresponding period - and an absence of fair value gain that had boosted profits in the same period last year.

This came about as its Shanghai and Zhuhai associates chalked up accrual of land appreciation tax amounting to S$20.5 million.

As for its share of results from jointly controlled entities, Ho Bee recorded losses from its residential development project in Tangshan and in-progress Australia projects, for which their marketing and promotional costs have to be expensed off under the accounting rules.

Moreover, the group had recorded a fair value gain of S$28.3 million in the same quarter last year for selling its leasehold interest in the petrol station site along Bukit Timah Road.

Revenue for the three months to June 30 - excluding fair value gain on investment properties and other operating income - rose 21.2 per cent to S$52.6 million, helped by contributions from Ropemaker Place, a London investment property which was acquired on June 15 last year.

"Coupled with positive rental reversions at The Metropolis in Singapore and other London properties, rental income for the quarter registered strong growth of 30 per cent," the group noted in a statement.

Earnings per share fell to 2.16 Singapore cents from 10.74 cents in the previous year.

No interim dividend was declared; Ho Bee said its policy is to consider a final dividend at the end of the fiscal year.

For the first-half year, net profit fell 65 per cent to S$42.1 million, while earnings per share slumped to 6.32 Singapore cents down from 18.16 cents previously.

Ho Bee shares closed S$0.01 or 0.4 per cent lower at S$2.32 on Tuesday before results were announced.