Roxy-Pacific posts record earnings, proposes higher dividend

Property and hospitality group Roxy-Pacific Holdings almost doubled its fourth quarter net profit to $44.8 million from $23.5 million previously.

Revenue for the three months to Dec 31 trebled to $169.7 million compared to $56.2 million in the same period in 2012.

For the full year, Roxy-Pacific turned in record earnings of $92.2 million, up 58 per cent.

Revenue surged by 94 per cent to $369 million.

Revenue from property development jumped by 131 per cent to $321 million, largely due to the recognition of revenue from WIS@Changi coupled with seven other development projects, namely Treescape, The MKZ, Spottiswoode 18, Jupiter 18, Space@Kovan, Jade Residences and Whitehaven.

Overall, this segment contributed 87 per cent of group turnover.

"We are glad to note that overall, the revenue recognition for these seven development projects in the fourth quarter of 2013 surpasses that for the whole of 2012," said Roxy-Pacific executive chairman and chief executive Teo Hong Lim in a statement.

Hotel ownership segment contributed 7 per cent or $11.8 million to group turnover in the fourth quarter, up marginally by 2 per cent.

With the full operation of hotel rooms from July 2013, Grand Mercure Roxy Hotel achieved an increase in the average occupancy rate to 90.3 per cent during the quarter.

Average room rate, on the other hand, fell by 8 per cent to $182.9.

Overall, revenue per available room increased by 2 per cent to $165.2 during the quarter.

Revenue from the property investment segment, which constituted less than 1 per cent of the group turnover, fell by 11 per cent to $390,000 in the fourth quarter, mainly due to expiry of lease terms for some shop units in Roxy Square.

Fourth quarter earnings per share swelled to 3.76 cents from 1.97 cents previously while net asset value per share grew by 6.37 cents to 27.62 cents.

A final dividend of 1.297 cents a share was proposed, up from 0.7392 cent for 2012.

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