Ho Bee Land posts stronger Q2 revenue on increase in rental income

Ho Bee Land’s The Metropolis in Buona Vista. Ho Bee Land's second-quarter turnover rose on the back of higher rental income, though earnings dipped owing to a one-off gain recorded last year. -- PHOTO: BUSINESS TIME FILE
Ho Bee Land’s The Metropolis in Buona Vista. Ho Bee Land's second-quarter turnover rose on the back of higher rental income, though earnings dipped owing to a one-off gain recorded last year. -- PHOTO: BUSINESS TIME FILE

SINGAPORE - Ho Bee Land's second-quarter turnover rose on the back of higher rental income, though earnings dipped owing to a one-off gain recorded last year.

The mainboard-listed property group's net profit for the three months ended June 30 came up to $12.2 million, 53.5 per cent lower than the corresponding period a year ago.

This was due to the absence of a $25.9 million gain on the disposal of Hotel Windsor, which bumped up net profit in the second quarter last year.

The company's turnover, boosted by higher revenue from investment properties, amounted to $26.8 million, up from $6.1 million in the same period last year.

Rental income from the Group's industrial and commercial properties rose to $25.7 million from $2.8 million in 2013.

This was mainly contributed by rentals of office buildings: The Metropolis in Buona Vista, and Rose Court and 1 St Martin's Le Grand in London.

For the six months ended June 30, net profit decreased 79.2 per cent from $78.4 million in the previous year to $16.3 million.

In addition to the sale of Hotel Windsor, the higher earnings in the first half of last year were also due to a $47 million gain on the sale of its investment interest in Chongbang Holdings in China, the company said in a statement on Monday.

Revenue amounted to $43.9 million in the first half, compared with $66.9 million in the corresponding period last year, as there was no revenue recognition from development properties this year.

Earnings per share for the second quarter was 1.83 cents, down from 3.88 cents in the same period last year.

Net asset value per share was $3.40 as at June 30, from $3.48 as at Dec 31 last year.