SINGAPORE (Mar 1): Hotel Grand Central saw its earnings fall 27% to $38.6 million for the FY17 ended December, from $52.9 million a year ago.
This was mainly due to the absence of a one-off gain of $28.4 million on the disposal of Hotel Grand Chancellor, Surfers Paradise in 3Q16.
Total revenue rose 8% to $163.0 million in FY17, from $151.4 million a year ago.
The increase was mainly due to the maiden contribution of revenue by Grand Central Building in Christchurch, which started recognising rental income in Jan 2017, as well as the purchase of two new investment properties in Christchurch and Hamilton in New Zealand 3Q17.
Revenue from hotel operations and management edged up by 3% to $146.7 million in FY17, from $141.8 million a year ago, while revenue from rental income from investment properties surged 71% to $16.4 million in FY17, from $9.5 million a year ago.
Earnings per share (EPS) fell to 5.71 cents in FY17, from 7.97 cents a year ago.
As at end December, cash and cash equivalents stood at $260.8 million.
Hotel Grand Central has proposed a final dividend of 5 cents per share and a special dividend of 3 cents per share for FY17.
This is higher than total dividend of 6 cents per share a year ago, comprising a final dividend of 5 cents per share and a special dividend of 1 cent per share.
Looking ahead, the group says the hotel markets where it primarily operates in are generally expected to improve in 2018.
In addition, the group's two new investment properties in New Zealand are expected to contribute a full year's contribution to 2018 earnings, compared to a part year contribution to 2017 earnings.
Shares of Hotel Grand central closed 2 cents up at $1.48 on Thursday.
