SINGAPORE (Feb23): Far East Orchard posts earnings of $65.0 million for the full year ended Dec 31, 2016, more than double from earnings of $29.1 million a year ago.
However, revenue for FY2016 fell 31.7% to $184.9 million, from $270.9 million a year ago.
The decline was mainly due to absence of the progressive revenue of $27.7 million recognised a year ago for the euHabitat residential development project, and the sale of the group’s 30% interest in 7 and 11 Bassein Road to an interested party for $38.1 million in FY2015.
Other income was 30.5% higher mainly due to higher interest income from higher bank deposits balances in FY2016.
Share of result of joint ventures increased to $69.1 million in FY2016, from $17.0 million a year ago.
This was mainly due to the recognition of profits from the joint venture property development project, SBF Center, which obtained its Temporary Occupation Permit in late June 2016, as well as higher profits contribution from the hospitality joint ventures.
Cash and cash equivalents stood at $209.3 million as at Dec 31, 2016.
Far East Orchard has proposed a first and final dividend of 6.0 cents per share for FY2016.
Looking forward, the group says the outlook for the hospitality sector in Australia remains positive.
Far East Orchard says it “plans to continue to grow its hospitality businesses by increasing the number of management contracts, acquiring strategic assets and divesting properties to recycle capital for re-deployment towards higher yielding growth opportunities when appropriate.”
It adds that it will “continue to seek suitable real estate opportunities that fit its strategy as a diversified real estate group.”
Far East Orchard closed half a cent lower at $1.56 on Thursday.
