Property firm Low Keng Huat's Q1 gains up 65%

Net profit rises to $5.4m, revenue increases 7 per cent to $16.9m

Property player Low Keng Huat reported net profit rising 65 per cent to $5.4 million for the first quarter ended April 30.

Revenue was 7 per cent higher at $ 16.9 million.

In the investment segment, Low Keng Huat said that profits rose in the quarter partly due to the decreased share of losses from Westgate Tower in Jurong as well as partly from the increased share of profits from AXA Tower.

Occupancy at Westgate Tower was 99.5 per cent as at June 12.

Low Keng Huat, part of a joint venture behind Paya Lebar Square, noted that the retail mall there was 100 per cent leased as at June 12.

In the development segment, Low Keng Huat said that Paya Lebar Square was 100 per cent sold as at June 12.

There is one residential unit left unsold at Parkland Residences, a project under the HDB Design Build and Sell Scheme (DBSS).

For its Kismis Residences, the company said the target launch date is the second quarter of FY2018. Perumal is in the planning stage.

In its hotel as well as food and beverage business, Low Keng Huat said revenue decreased from the previous year, mainly due to lower rates and occupancy in Duxton Perth.

Duxton Saigon was disposed of in the first quarter of the previous year.

Despite the sluggish market, recent land sales by the Government have attracted foreign developers and high bidding prices. "The group will continue to be selective in land bidding and investment projects," Low Keng Huat said.

Earnings per share for the quarter was 0.73 cent, compared with 0.44 cent in the same period a year earlier. Net asset value was 92 cents, compared with 90 cents as at Jan 31.

A version of this article appeared in the print edition of The Straits Times on June 16, 2017, with the headline 'Property firm Low Keng Huat's Q1 gains up 65%'. Print Edition | Subscribe