Lower revenue recognition of development properties has dragged down Ho Bee Investment's second quarter net profit by 64 per cent to $26.2 million.
Revenue for the three months to June 30 dived by 95.8 per cent to $6.1 million, no thanks to a dearth of new home sales and negligible revenue recognition from past projects that had been completed.
The plunge in profit would have been on a similar scale if not for a one-off gain amounting to $25.9 million from the sale of Hotel Windsor, which was completed in May.
The revaluation reserve amounting to $94.7 million was transferred to unappropriated profit upon completion of sale.
Total gain on the sale of the hotel was $120.6 million.
Earnings per share plunged to 3.9 cents from 10.4 cents previously while net asset value per share grew to $2.70 compared to $2.58 as at Dec 31.
Ho Bee said a combination of cooling measures and impending supply has resulted in an uncertain and challenging environment in the Singapore residential market.
It has also expanded its investment portfolio, which includes Rose Court in London and The Metropolis in One North.
The Metropolis comprising 1.08 million square feet of lettable commercial space will be fully completed in October.
More than 82 per cent of the space has been pre-committed.
"Together with our acquisition of Rose Court office building in London, the rental income will underpin our bottom line for the next few years with the expected slowdown in the residential market," the company noted.