SINGAPORE (May 22): Boustead Projects, the specialist in real-estate solutions, reported 4Q earnings more than doubled to $14.3 million from $5.4 million a year ago.
The increase was mainly higher other gains, primarily the non-recurring compensation from the early termination of the AusGroup lease as well as the gain from the sale of the BP Group’s interest in TripleOne Somerset, but partially offset by an impairment loss on an investment property.
Revenue for the three months ended March fell 35% to $38.5 million due to lower revenue contributions from both the design-and-build and leasing businesses.
Full-year earnings rose 58% to $36.1 million due to better operating results from the design-and-build business, and higher other gains.
Without the one-off other gains and losses, adjusted earnings would have been $24.8 million or 8% higher year-on-year.
Revenue fell 11% to $228.3 million to lower revenue contributions from both the design-and-build and leasing businesses.
Design-and-build revenue for FY17 was $195.2 million, 12% lower on-year. The previous year registered higher revenue mainly due to greater work progress in several significant projects.
Leasing revenue for FY17 declined to $33.1 million, mainly due to a few partial vacancies in the industrial leasehold portfolio and the early termination of the AusGroup lease, partially offset by the initial full-year contributions of two leases.
The current order book backlog stands at about $146 million.
The board has proposed an inaugural final dividend of 2.5 cents per share, comprising an ordinary dividend of 1.5 cents per share and a special dividend of 1 cent per share.
In the coming year, Boustead Projects plans to remain focused on building additional strategic platforms, capturing opportunities in high value industries, driving cost and productivity improvements, and diversifying its business outside of Singapore.
Shares of Boustead Projects closed 1 cent lower at 87 cents.
