Hotel Properties Q3 net profit falls sharply in absence of one-off gain

SINGAPORE - Hotel Properties said its net profit plunged to $15.1 million from $50.4 million in the third quarter.

Revenue for the three months to Sept 30 fell by 18.9 per cent to $146 million.

Despite higher contributions from its resorts in the Maldives and Bali, the group recorded a lower revenue due to the completion of the Tomlinson Heights condominium development in March.

Nevertheless, collection from purchasers during the quarter resulted in higher cash generated from operations of $94.8 million compared to $28.5 million for the same quarter last year.

Its share of results of associates and jointly controlled entities decreased from $25.6 million to $300,000 due mainly to lower profits from The Interlace condominium development at Alexandra Road and d'Leedon condominium development at Farrer Road, which were completed in September 2013 and October 2014 respectively.

The results from the third quarter of last year also included a non-recurring gain on disposal of certain investment properties at Kensington Square, London, amounting to $12.6 million.

Earnings per share dropped to 2.46 cents from 9.48 cents previously while net asset value per share inched up by two cents in the intervening six months to $3.15.

Looking ahead, Hotel Properties said its hotels and resorts traditionally perform well in the last quarter, although political uncertainties and the potential escalation of the Ebola outbreak may pose challenges.

The Singapore residential property market sentiment remains weak with both transaction volume and prices declining.

In London, the group has commenced soft marketing of apartments at Burlington Gate and Campden Hill.

Income from these projects will only be recorded upon completion.