Roxy-Pacific's Q1 net profit surges 29% to $11.7 million

Revenue recognition at six residential and mixed-development projects boosted the first quarter financial showing of Roxy-Pacific Holdings.

Net profit surged 29 per cent to $11.7 million for the three months ended March 31 from a year earlier while revenue soared 41 per cent to $53.7 million.

Roxy-Pacific, a hospitality and property group listed on the Singapore Exchange, announced its first quarterly results earlier today.

Its property development arm accounted for 79 per cent of first-quarter revenue and grew by 72 per cent to $42.4 million.

This increase was due to the higher revenue recognition for six projects: the Treescape, The MKZ, Straits Residences, Spottiswoode 18, Jupiter 18 and Space@Kovan - a mixed development.

The hotel ownership division contributed about 20 per cent or $10.9 million to Roxy-Pacific's first-quarter revenue.

It owns the Grand Mercure Roxy Hotel which has been undergoing upgrading works.

The closure of rooms for renovation caused the average occupancy rate to dip to 79.2 per cent for the first quarter this year, down from 92.8 per cent in the corresponding quarter last year.

However, the firm expects the demand for hotel rooms to remain strong for the rest of 2013 as tourist arrivals to Singapore are forecasted to hit 15.5 million this year.

The remaining revenue came from the property investment segment based on rental yields from shop units at Roxy Square.

In addition, the share of profits of associates increased by more than five times to $1.8 million in the first quarter.

Earnings per share for the quarter climbed to 1.24 cents from 0.95 cents a year earlier.

Net asset value per share rose to 27.78 cents compared with Dec 31 figures of 26.56 cents.

The firm's share price closed one cent higher at 60 cents.