SINGAPORE - Higher finance costs and lower sales from its property development unit led to a drop in full-year profit for Hotel Properties.
The company said yesterday that profit dropped 30 per cent to $124.4 million for the year ended Dec 31, down from the $177.6 million made in the previous year.
Earnings fell in tandem with a decline in revenue, which dropped 11 per cent to $614.6 million.
Hotel Properties said it saw higher contributions from its resorts in the Maldives and Bali, which lifted revenue from the hotels segment to $498 million from $464.2 million.
But its results were dragged down by the properties arm, where revenue fell to $117 million from $228.2 million.
Its share of results from associates and jointly-controlled entities also decreased to $33 million from $63.5 million as it saw lower profits from The Interlace and d'Leedon condominiums.
The completion of its Tomlinson Heights project also led to an increase in the finance costs, which rose to $32 million from $25.1 million.
Last year's results were also affected by the absence of exceptional gains.
Hotel Properties made a one-time gain of $13 million on the disposal of investment properties at Kensington Square in London in 2013, which led to a higher base of comparison.
The company is staying cautious about its prospects this year.
"Our hotels and resorts are expected to continue to contribute steadily to the group's operating results, although the global economic recovery remains mixed.
"Singapore private residential properties sales for 2014 was halved to about 7,400 units, with prices declining by 4 per cent as compared to the previous year."
Earnings per share declined to 22.34 cents from 33.19 cents but the net asset value per share rose to $3.28 from $3.13.
A first and final cash dividend of four cents per share and a special dividend of six cents per share have been declared, up from a total of eight cents the year before.