SINGAPORE (Aug 7): Property group Ho Bee Land has announced earnings of $36.1 million for the 2Q17 ended June, 14.1% lower compared to the group’s $42 million earnings posted in 2Q16 on lower revenue.
This translates to earnings of 5.42 cents per share for the quarter compared to 6.31 cents in 2Q16.
Revenue for 2Q17 fell 75.3% to $43.4 million from $175.5 million in 2Q16.
Sales of development properties fell 97.9% to $2.8 million on the absence of sales recognition from two residential development projects in Melbourne and Gold Coast, Australia, which were competed in the second quarter of the previous year.
Rental income fell 5.1% to $34.6 milliion.
Other operating income more than doubled to $6.1 million.
The group’s bottom line was also boosted by the share of profits from associates and jointly-controlled entities in China.
Share of profits from associates in 2Q17 rose 61% to $12.2 million from $7.6 million in the corresponding period last year, mainly from Ho Bee’s residential project in Shanghai.
Meanwhile, share of profits from jointly-controlled entities increased nearlyt sixfold to $3.2 million in 2Q17, with its main contribution from the group’s residential project in Tangshan.
Over the quarter, the group also received a distribution income amounting to $4.5 million from its jointly-controlled project in Melbourne, Eporo Tower, which was recently completed.
For 1H17, Ho Bee’s earnings rose 52.8% to $92.4 million from $60.5 million in the previous financial year, translating to higher earnings per share of 13.88 cents compared to 9.08 cents in 1H16.
“The group has continued to enhance its recurring income base by acquiring another prime London commercial property in June this year,” says Chua Thian Poh, chairman and CEO of the group.
See: Ho Bee Land acquires prime London property for $228 mil
“With the strong recurring income and the expected development profits from its residential projects in Australia and China, the group will remain profitable for the rest of the year,” he adds.
Shares of Ho Bee closed 1 cent lower at $2.41 on Monday.
