SINGAPORE (Apr 24): Far East Orchard saw its earnings climb 36.9% to $7.7 million for the 1Q ended March, from $5.6 million a year ago.
The group’s 1Q18 gross profit rose 12.5% to $15.2 million, despite sales revenue dipped marginally by 0.7% to $39.2 million during the quarter.
The improvement was due to higher sales from Oasia Suites Kuala Lumpur and the opening of two student accommodation properties in Newcastle, which overcame a decline in sales from its hospitality business in Australia.
In addition, Far East Orchard’s bottom-line was lifted by its share of profit of joint ventures, which soared to $4.4 million in 1Q18, from $1.3 million a year ago.
This was mainly due to recognition of profit from its Harbourfront Balmain joint venture property development project in Australia, on units settled in 1Q18.
As at end March, cash and cash equivalents stood at $250.1 million.
Looking ahead, the group 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.
Meanwhile, on the property front, the group says it will continue to seek suitable real estate opportunities that fit its strategy as a diversified real estate group.
Shares of Far East Orchard closed 1 cent lower at $1.47 on Tuesday.
