SINGAPORE (Feb 12): Metro Holdings, the property group backed by regional retail operations, reported 3Q18 earnings surged 7.2 times to $146.7 million from $20.5 million a year ago.
Overall, net profit was lifted by the group’s share of a divestment gain from Top Spring International's very substantial disposal of eight property projects.
Revenue rose 5.4% to $39.3 million from $37.3 million a year ago as the retail division reported higher sales. Accordingly, gross profit rose 34.8% to $4 million.
Other net income decreased to $11.5 million for 3Q18 from $14.7 million for 3Q17 mainly due to fluctuations in foreign exchange.
Changes in fair value of short-term investments recorded an unrealised fair value gain of $1.3 million in 3Q18 compared to an unrealised fair value loss of $4.0 million in 3Q17 from the group’s portfolio of short-term equity investments in REITs held by the property division.
Share of results of associates recorded a gain of $137.5 million in 3Q18 from $9.0 million in 3Q17 mainly after the group recorded a $148.8 million share of a gain arising from a very substantial disposal of eight property projects by Top Spring.
As a result of the foregoing, profit before taxation increased to $148.3 million in 3Q18 from $21.7 million in 3Q17.
In its outlook, Metro says it will continue to actively manage its capital recycling strategy for enhancement of shareholder value.
Shares in Metro closed at $1.11 on Monday.
