SINGAPORE - Property developer Hong Fok reported a net profit of $188.9 million for fiscal 2018 ended Dec 31, a 6 per cent increase from $178.1 million for FY2017.
Earnings per share was 27.26 cents, up from 25.69 cents. Hong Fok shares closed flat at $0.70 on Thursday (Feb 28).
It proposed a final dividend of one cent per share and a special dividend of 0.3 cent per share. For the previous year, Hong Fok paid out a dividend of one cent per share.
The developer's revenue surged 87 per cent to $131.1 million, from $70.0 million for FY2017, on the back of more residential units sold and contributions from Yotel Singapore Orchard Road.
While Hong Fok's other income decreased mainly due to lower government grants/schemes and absence of gain on disposal of property, plant and equipment, and licence fees from its investment properties, these were partially offset by an increase in compensation income from its properties.
It recorded an impairment loss of $214,000 on the provision of doubtful debts from its trade and other receivables for the year, compared to $32,000 written back on trade and other receivables, and bad debts written off for FY2017.
The group expects to recognise profit from the sales of Concourse Skyline residential units for 2019. It said that cooling measures on the property market would have an impact on the pace of sales, but it would will continue to actively market the sale and leases of its properties.
It also expects stable contribution from Yotel for 2019 after its positive 2018 contributions.