Tuan Sing Holdings yesterday reported an 8 per cent drop in third-quarter net profit to $16.2 million, due to an impairment loss of $7.7 million relating to its development land in Fuzhou, China.
Revenue for the three months to Sept 30 rose by 85 per cent to $184.3 million, mainly due to higher revenue recognised for Seletar Park Residence, Sennett Residence and Cluny Park Residence based on progressive revenue recognition and the consolidation of revenue of the Grand Hotel Group (GHG), following Tuan Sing's acquisition of the remaining 50 per cent interest in GHG last December.
The increase in gross profit was in line with higher revenue and was further boosted by relatively higher gross margin from GHG.
Excluding the impact of the impairment loss, net profit would have been $23.9 million, or 36 per cent, higher than for the same period last year, thanks to higher contributions from property in Singapore and hotel investments in Australia.
Earnings per share slipped to 1.4 cents from 1.5 cents in the same period last year. Net value per share climbed to 71.8 cents, compared with 68.3 cents as at Dec 31.
CDL Hospitality Trusts
CDL Hospitality Trusts said yesterday its distribution per unit (DPU) fell 9.7 per cent to 2.36 cents for the third quarter ended Sept 30.
Net property income in the quarter declined 2.2 per cent to $33.1 million, after deducting operating expenses of Jumeirah Dhevanafushi and the Japan Hotels, and the portfolio's property tax and insurance expenses.
The group said gross revenue rose 2.4 per cent to $41.1 million over the year-ago quarter. This was due mainly to the contribution of
$2.4 million from the acquisition of the Japan Hotels last December and incremental rental income of $1.2 million from the newly refurbished Claymore Connect mall.
However, this was offset by reduced rent contribution of $2.3 million from its Singapore hotels. Its Australian and New Zealand hotels also recorded lower contributions as the Australian and New Zealand currencies weakened against the Singapore dollar.
Total income available for distribution, after deducting income retained for working capital, fell 9 per cent to $23.3 million. The group said this amount does not include contribution from its Japan hotels, which is only available for distribution in the fourth quarter.
Based on yesterday's closing price of $1.40, the annualised distribution yield of the trust works out to 6.7 per cent.