Company briefs :Sheng Siong Group

Sheng Siong Group

Supermarket operator Sheng Siong Group reported an 11.3 per cent rise in second quarter net profit to $15.2 million.

Revenue for the three months to June 30 was up 5.5 per cent at $188.8 million, mainly due to contribution from new store sales.

Comparable same-store sales grew mainly as a result of a general improvement in sales at the older stores and the resumption of its McNair Road store which was closed for almost a month in the second quarter of last year for a total refurbishment.

If sales from the McNair store were excluded, comparable same-store sales would have grown by 1.3 per cent instead of 2.2 per cent.

Gross margins increased to 26.1 per cent compared with 25.2 per cent in the same period last year, predominantly due to suppliers' rebates and reduction in input cost derived mainly from bulk handling which was facilitated by continual improvements in the central warehouse in Mandai.

Earnings per share grew to 1.01 cents from 0.91 cent previously while net asset value per share firmed to 16.59 cents compared to 16.24 cents as at Dec 31. Looking ahead, Sheng Siong said competition in the supermarket industry is expected to remain keen. Sheng Siong has declared an interim dividend of 1.9 cents per share, up from 1.75 cents last year.

Parkway Life Reit

Parkway Life Real Estate Investment Trust said its distribution per unit (DPU) for the second quarter dropped 10.2 per cent to 3.01 cents from 3.35 cents a year ago due to the absence of one-off distribution of divestment gain.

Gross revenue increased 6.8 per cent to $27.4 million for the second quarter driven primarily by contribution from one nursing home acquired on March 31, higher rent from its Singapore hospitals and appreciation of the Japanese yen as compared to the same period last year. After deducting property expenses, net property income for the second quarter was 6.4 per cent higher at $25.5 million.

The Reit's Singapore hospital properties continued to enjoy growth based on its minimum guaranteed rent for the 10th year of its lease term from Aug 23 this year to Aug 22 next year. For this period, they will continue to register a 1 per cent increase in minimum guaranteed rent above the total rent payable for the previous year.

In Singapore, Parkway Life Reit owns three private hospitals - Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital.

A version of this article appeared in the print edition of The Straits Times on July 27, 2016, with the headline 'Company briefs'. Print Edition | Subscribe