Bonvests Holdings' profit down on lower revaluation gain

SINGAPORE - Lower revaluation gain on investment properties, foreign exchange losses and lower contributions from investments have led to lower earnings at hotel and property group Bonvests Holdings.

Net profit for the full year ended Dec 31 fell 39.1 per cent to $34.2 million, despite revenue rising 6.9 per cent to $196.7 million.

The bulk of the fall in profit was attributed to the decrease in the gain on the revaluation of its investment properties, which declined 63.8 per cent to $13 million last year from $35.7 million in the previous year.

Bonvests also took a hit from a drop in other income, including interest income, which fell 59.6 per cent to $15.9 million.

Earnings per share was 8.5 cents, down from 14 cents previously, while net asset value per share rose to $2.02 from $1.98.

A first and final dividend of 1.6 cents has been declared, up from 1.5 cents in the previous year.

Bonvests expects market conditions for its hotel division to remain challenging, while its investment segment could be affected by stock market volatility.

But it expects the property rental market here and in Tunis to remain stable in the near term, with the industrial division staying profitable.