Lower revenue recognition from development project hits earnings of Sing Holdings

Sing Holdings' third quarter net profit shrank by 68.4 per cent to $3.4 million, due mainly to lower revenue recognition from its development project and higher sales and marketing expenses incurred.

Revenue fell by 57.4 per cent to $31.3 million for the three months to Sept 30.

This comprises progressive recognition of proceeds from the sale of The Laurels.

The development obtained Temporary Occupation Permit (TOP) in September and the balance 4 per cent of the contracted sales of The Laurels was recognised as revenue during the quarter, together with the corresponding costs.

The decrease in other income was largely attributable to lower interest income and a drop in rental income from development properties, as these properties were vacated and demolished to make way for redevelopment.

Earnings per share eased to 0.84 cent from 2.67 cents previously while net asset value per share firmed to 56.39 cents compared to 50.68 cents as at Dec 31.

Sing Holdings has two development projects in the pipeline.

Construction work for Waterwoods commenced in the second quarter.

This executive condominium development is a 70:30 joint venture between the Company and a subsidiary of UE E&C.

The project was launched for sale in early November and some 34 per cent of the units have been sold so far, amounting to contracted sales value of about $129.7 million.

As an EC development, revenue from sale of units in the project will not be recognised until upon issuance of the Notice of Vacant Possession after TOP is obtained.

The group's other development project, Robin Residence is a private condominium development undertaken solely by a wholly-owned subsidiary.

Construction work also commenced in the second quarter.

The sales launch of this project is targeted to be in mid-2014.

Sing Holdings also owns 50 strata units in BizTech Centre with a saleable area of 52,358 square feet, of which 98 per cent is tenanted.