SINGAPORE - Property group Roxy-Pacific posted a 43 per cent drop in net profit to $13 million for the second quarter ended June 30. Revenue was 9 per cent lower at $93.7 million.
But with a strong first quarter, profits for the first half still came in higher. Profits for the first half ended June 30 jumped 58 per cent to $59.5 million while revenue was 60 per cent higher at $291.9 million.
Earnings per share for the second quarter fell to 1.09 cents from 1.91 cents previously. Net asset value rose to 36.89 cents as at June 30 compared with 33.54 cents as at Dec 31.
Mr Teo Hong Lim, Executive Chairman and CEO of Roxy-Pacific commented: "We are pleased that our first half performance demonstrated the Group's resilience amidst a challenging operating environment and slowdown in the Singapore property market. We recognised higher revenues from several projects in the first half and are pleased that our investment in the Goulburn Street office asset in Australia continued to contribute strong recurring rental income to our Property Investment segment.
"While Singapore still remains our key market, in view of the slowdown in the property sector, we will prudently seek projects and land acquisitions with good locations and niche positioning to protect our margins and shareholders' interests. Meanwhile, we seek to diversify our portfolio overseas and across all property segments, working with reputable partners with strong local knowledge, experience and network to source for the best deals."
In Hong Kong, we are pleased to announce that we have successfully sold all 21 strata-titled retail floors for our property investment at 8 Russell Street, an attractively located mixed-development in which we have a 30 per cent-stake."
"We have also recently announced the signing of an agreement to acquire a plot of land located at Jalan Kramat Raya No. 110, Jakarta, Indonesia, in a 49 per cent joint venture with Indonesian partners. The land is located in one of the commercial roads in Central Jakarta with consideration for the entire plot of land of approximately Rp 68.1 billion or S$7.0 million.
"With good headroom from our recently-established S$500 million Multicurrency Debt Issuance programme, we are looking at deepening our footprint in existing markets while expanding into new geographies to build up our yield-accretive property and hospitality asset base."