SINGAPORE (May 13): Heeton Holdings has announced earnings of $1.1 million for 1Q19, down 83.5% from $6.7 million a year ago, mainly due to other operating income and share of results of associated companies and joint venture companies.
Revenue for 1Q fell 6.1% y-o-y to $11 million from $11.8 million previously, mainly due to lower sale revenue from residential project Onze@Tanjong Pagar and lower rental revenue post the completion of investment property, The Woodgrove.
In line with the lower revenue recognised, cost of properties sold decreased to $0.9 million from $4.9 million a year ago.
Other operating income booked an 86.6% decline to $0.6 million from $4.8 million in 1Q18 in the absence of a gain on disposal of The Woodgrove.
Meanwhile, other operating expenses grew 49.8% to $3.9 million from $2.6 million previously following the acquisition of Indigo Hotel in Glasgow, and Stewart Aparthotel in Edinburgh.
Share of profits from associated companies and joint venture companies fell 85% to $0.5 million from $3.46 million the previous year, mainly due to the share of losses on expenses incurred for new residential projects Park Colonial and Affinity@Serangoon, on top of lower profit recognition of fully-sold residential projects.
In its outlook, Heeton says the overall outlook for Singapore’s residential property market remains muted as cooling measures continue to depress sales and dampen prices.
The group says it will nonetheless continue to explore opportunities to expand its recurring income base while pursuing suitable investments and acquisitions to strengthen its long-term growth, while also continuing its efforts to expand its global hospitality footprint.
Shares in Heeton closed flat at 48 cents on Monday.
