Metro Holdings doubles Q2 profit on one-off gain

Property group and department store operator Metro Holdings doubled its second quarter net profit to $61.2 million. -- PHOTO: ST FILE
Property group and department store operator Metro Holdings doubled its second quarter net profit to $61.2 million. -- PHOTO: ST FILE

SINGAPORE - Property group and department store operator Metro Holdings doubled its second quarter net profit to $61.2 million.

The group recognised its available-for-sale investment in Top Spring International Holdings as an associate company effective July 1, 2014.

As a result, Metro recorded a one-off gain of $59.3 million, which boosted its bottom-line.

Revenue for the three months to Sept 30 fell to $31.3 million from $33 million in the same period last year.

Revenue for its core property division declined to $2.5 million from $2.8 million, largely as a result of lower occupancy at GIE Tower, Guangzhou, the weaker yuan.

The group's average occupancy rate for its five investment properties in China and Japan during the quarter continued to remain high at 93.7 per cent despite a decline in Metro City, Shanghai's occupancy rate due to the next phase of refurbishment works scheduled.

Its retail division recorded revenue of $28.8 million, a drop from $30.2 million previously.

It also incurred higher expenses contributed by higher operating expenses and the pre-opening costs for the group's new Metro Centrepoint store at Orchard Road.

Metro's Indonesia retail operations experienced an improved environment but continued to be impacted by high operating costs.

Earnings per share climbed to 7.4 cents from 3.7 cents previously while net asset value per share climbed to $1.51 compared to $1.43 as at March 31.