Property development propels earnings of Roxy-Pacific

SINGAPORE - Roxy-Pacific Holdings reported a 29 per cent rise in first quarter net profit to $15.1 million.

Revenue for the three months to March 31 was up 48 per cent to $79.5 million.

The increase was the result of 58 per cent and 10 per cent increase in revenue from property development segment and the hotel ownership segment respectively, partly offset by a 2 per cent fall in revenue in property investment segment.

The Property Development segment, which comprises residential and commercial developments, contributed 84 per cent amounting to S$67.1 million to total group turnover.

The development of Spottiswoode 18, Space@Kovan, Treescape, The MKZ, Jade Residences and Whitehaven progressed smoothly.

The hotel segment contributed 15 per cent to group turnover.

The average occupancy rate of Grand Mercure Roxy Hotel increased to 90.2 per cent, up from 79.2 per cent in the same period last year, due to the full operation of hotel rooms starting from July 2013.

Earnings per share firmed to 1.27 cents from 0.98 cent previously while net asset value per share grew to 28.88 cents compared to 27.62 cents as at Dec 31.

Looking ahead, Roxy-Pacific said the various cooling measures introduced by the Government has affected property market sentiments.

On the other hand, fewer-than-expected completion of new hotels this year could lead to a room crunch, which "bodes well for room rates" of existing hotels.