TEE Land's Q2 profit up 46% on increased recognition of sales at Aura 83

Singapore - Higher recognition of sales at a new project has helped to lift developer TEE Land's second quarter net profit.

Its profit for the three months ended Nov 30, 2014, rose 46 per cent to $2.42 million, the company said on Monday.

Revenue jumped 519.5 per cent to $15.1 million from $2.4 million over the period, as the firm said higher progressive revenue was recognised for its Aura 83 development.

Cost of sales also went up significantly from $1.4 million to $11.3 million.

Profit for the half year increased 129.1 per cent from $2.2 million to $5.1 million, as revenue rose 34.6 per cent to to $21.6 million.

Earnings per share for the second quarter stood at 0.54 cents, up from 0.37 cents in the same period a year ago.

Net asset value per share was 33.5 cents as at Nov 30, up from 33.1 cents as at May 31.

TEE Land has declared an interim dividend of 0.44 cents per share.

The company said it does not expect any improvement in the Singapore property market as the government has indicated that the cooling measures will not be lifted anytime soon.

The firm has exposure to Singapore, Malaysia, Thailand, New Zealand and Australia.

It also expect the trend of slowing property sales in Malaysia to continue for the next 12 months, though it's of the view the Thai property market is recovering.

New Zealand and Australia's property markets, meanwhile, are expected to be stable.

TEE Land chief executive Jonathan Phua said: "While we remain cautious on Singapore and Malaysia, given the continued enforcement of cooling measures on the property markets, we continue to be confident on the long term prospects of our other markets, such as Thailand, New Zealand and Australia."

"As such, we have been steadily acquiring new land and assets to further strengthen our portfolio in these markets."