SINGAPORE (Dec 9): Property developer Low Keng Huat (Singapore) saw its earnings fall 60% to $2.6 million for the 3Q18 ended October, from $6.6 million a year ago.
The decline was on the back of lower revenue during the quarter. 3Q18 revenue fell 31% to $9.2 million, from $13.5 million a year ago.
However, 9M18 revenue soared to $162.5 million, from $44.1 million a year ago. The increase was mainly due to increased sales in the Development segment, with Kismis Residences & Tranquilia @ Kismis fully sold in 9M18.
This was partially offset by decreased revenue in the Hotel segment, with lower revenue at Duxton Hotel Perth due to lower room rates.
The group also saw lower revenue from its food and beverage business was due to closure of outlets.
Distribution costs more than doubled to $1.1 million in 3Q18, from $0.5 million a year ago. The increase was mainly due to sales commission from the sale of development property at Kismis and showflat expense at mixed development Perumal.
As at end October, cash and cash equivalents stood at $92.5 million.
Low Keng Huat says the residential property market is more subdued since the recent tightening of property cooling measures.
Looking ahead, the group says it will continue to be selective in land bidding and investment projects, and will strive to maintain rental rates for renewals.
Shares in Low Keng Huat last closed at 52 cents on Dec 5.
