Company Briefs: Lian Beng Group

Lian Beng Group

Developer Lian Beng has enjoyed a bumper first quarter thanks to a higher share of profits from associates and joint ventures.

Net profit shot up 169.5 per cent to $32.3 million for the three months ending Aug 31. Revenue fell 19.1 per cent to $135.6 million.

The share of profits from associates and joint ventures rose thanks to several projects: NEWest, KAP Residences, Eco-tech@Sunview and The MidTown.

Revenue decreased mainly because of lower revenues from the construction business and the ready-mixed concrete business.

Earnings per share for the three months was 6.35 cents, up from 2.26 cents a year earlier. Net asset value per ordinary share was 96.42 cents as at Aug 31, up from 91 cents as at May 31.

First Real Estate Investment Trust (First Reit)

Third-quarter distribution per unit (DPU) at First Reit rose on rentals from a hospital acquired at the end of last year and better contributions from Indonesia and Singapore.

DPU for the three months ended Sept 30 rose 3 per cent from 2.02 cents a year earlier to 2.08 cents.

Income available for distribution rose 6.2 per cent to $15.6 million, and net property income grew 6.8 per cent to $25 million.

Gross revenue rose 6.1 per cent to $25.3 million. This was because of rental income contribution from Siloam Sriwijaya, a hospital acquired in December last year, and higher contributions from Indonesia and Singapore properties, First Reit's manager said in a statement.

Earnings per unit for the three months was 1.91 cents, up from 1.79 cents for the corresponding period a year earlier. Net asset value per unit was 102.02 cents as at Sept 30, up from 101.81 cents as at Dec 31 last year.

The Reit has strong acquisition opportunities in Indonesia as its sponsor, PT Lippo Karawaci Tbk, has been expanding its healthcare footprint in Indonesia, with more than 40 hospitals there. The Reit has the first right of refusal to properties PT Lippo Karawaci Tbk owns and is willing to sell.

Dr Ronnie Tan, chief executive officer of the Reit manager, said: "To continue with our growth trajectory, the trust plans to embark on our first asset enhancement initiative in Indonesia with the Siloam Hospitals Surabaya. This will optimise the value of existing assets and enhance the returns to our unitholders."

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A version of this article appeared in the print edition of The Straits Times on October 14, 2015, with the headline Company Briefs: Lian Beng Group. Subscribe