Mainbaord-listed builder Low Keng Huat recorded a 52% drop in its latest 1HFY2021 ended July earnings to $25.1 million, compared to $51.9 million in 1HFY2020.
This was mainly due to a loss from its associated companies and joint ventures ad an increase in taxation.
Revenue for the first half period increased significatly to $88.9 million, compared to $22.9 million last year.
Increase of revenue was mainly from the group's development segment of $57.3 million. Development revenue increase was solely due to sales at Uptown @ Farrer. As at July 31, 93 out of 116 units were sold at average price of $1,863 psf.
Hotel and Investment segments increased their revenue by $3.3 million and $5.5 million respectively in 1HFY2021 compared to 1HFY2020. The increase in revenue in Investment segment was mainly due to increased construction revenue at Dalvey Haus and absence of rental relief granted to tenants at Paya Lebar Square retail mall.
Construction completion at Dalvey Haus was 22% at 1HFY2021 and 1% at 1HFY2020. The rental relief was granted due to lockdowns and safe distancing measures imposed by the Singapore government to curb the spread of Covid-19 pandemic in the same period last year. The increase in revenue in Hotel segment was mainly due to the increase in occupancy rates and average room rates at both Duxton Perth and Citadines Balestier.
Other income also saw a significant increase to $29.6 million from $2.2 million a year ago, mainly due to gain on disposal of investment properties, comprising office units at Paya Lebar Square of $8.6 million and gain on disposal of investment in joint ventures in Westgate group of companies of $19.7 million.
The group recorded a loss from share of results of associated companies and joint ventures of $281,000 compared to share of profit of $53.8 million last year. The decrease was mainly due to the gain on sale of equity stake in Perennial Shenton Holdings of $50.0 million last year.
Shares in Low Keng Huat closed at 46 cents on Sept 14.
Photo: Low Keng Huat
