SINGAPORE - Changes in development properties of negative $15.9 million and higher selling expenses due to the sale of units in Marina Tower in Melbourne, as well as a foreign exchange loss of $4 million due to the weaker Australian dollar eroded results for property developer Hiap Hoe for its first quarter.

Changes in development properties was just negative $5.1 million a year ago. Other expenses increased by $4.6 million to $12.5 million in Q1 2018, mainly due to selling expenses for Marina Tower and operating costs for the group's hotels. The group also recorded a foreign exchange loss of $4 million due to the weakening of the Australian dollar, as compared to a foreign exchange gain of $2.4 million a year ago. Included in the quarter was also a fair value loss in financial instruments of $2.1 million as compared to a fair value gain of $3.4 million for Q1 2017.

As a result, the developer fell into the red, recording a net loss of $1.3 million, compared with net profit of $7.1 million in the year-ago period, the group said in a Singapore Exchange filing late on Tuesday (May 8).

This was despite revenue leaping 94.5 per cent to $49.3 million from the previous year. The growth in revenue was due to sale of units at Marina Tower, higher rental revenue from Orchard Towers units acquired in December 2017, and higher occupancies for its other properties. In addition, revenue from hotel operations increased due to the commencement of hotel operations in Four Points by Sheraton, Melbourne, and the completion of the acquisition of Holiday Inn Express Trafford City, Manchester, last June.

It made a loss per share of 0.28 cent, from earnings per share of 1.51 cents for the previous year. Net asset value per share dipped to $1.6562 as at March 31, from $1.6733 three months ago.

Hiap Hoe said that the completion of units sold at Marina Tower will continue in the next 12 months.