Lower revenue recognition for development projects drags earnings of Ho Bee Land

Developer Ho Bee Land has posted a 76.7 per cent drop in third quarter net profit to $7.3 million.

Revenue shrank by 71.1 per cent to $16.3 million for the three months to Sept 30.

This was attributed to lower revenue recognition for development properties.

Share of profits of jointly controlled entities decreased by 76 per cent to $4.8 million.

Revenue from property development fell by 84 per cent to $8.5 million.

Turnover for property investment, however, trebled to $7.8 million, due mainly to the rental income derived from Tower 1 of The Metropolis which obtained temporary occupation permit in July and Rose Court, an office development in London which was acquired in June.

Earnings per share fell to 1.1 cents from 4.5 cents previously while net asset value per share climbed to $2.70 compared to $2.58 as at Dec 31.

Looking ahead, Ho Bee noted that the 1.08 million square feet of lettable commercial space of The Metropolis at One-North has been fully completed in November.

To-date, more than 90 per cent of the space has been pre-committed.

Together with the office building in London, Rose Court, the rental income will contribute to future earnings.

"In accordance with the company's practice, all investment properties will be revalued by independent professional valuers at the end of the financial year. It is expected that the revaluation of The Metropolis will result in a substantial fair value gain which will be reflected in the next quarter and full year results," said Ho Bee.