SINGAPORE (April 28): Property developer Oxley Holdings has declared $45.7 million in earnings attributable to holders for the third quarter ended March 31, down 12% from the $52.2 million it posted a year ago in spite of a near doubling of its revenue for the quarter.
Group revenue for 3Q17 was $386.5 million as compared to $202.6 million in the previous year, up 91% from 3Q16 due to the recognition of revenue from a commercial project, The Flow; sales of a mixed-residential development at Joo Chiat Road; as well as the handover of certain plots in The Royal Wharf Phase 1A.
Revenue was also recognised on sold units in five mixed-residential projects in Singapore, in addition to rental income from investment properties.
Cost of sales, however, more than doubled to $294.5 million from $136.7 million in the preceding year as a result of the sold projects, in addition to direct expenses incurred on the investment properties.
While marketing and distribution expenses fell 3% to $2 million due to lower advertisement expenses and showflat expenses, administrative expenses registered a 27% increase to $11.7 million due to an increase in property tax, professional fees, withholding tax, salaries and director’s remuneration.
Finance costs fell by 20% to $11.5 million due to the decrease in interest expenses on bond interest, which was partially offset by higher amortisation of transaction cost on fixed rate notes and a loan interest of $1.11 million.
Other losses grew to $8.2 million as compared to $1 million in the previous year due to a higher foreign exchange (forex) adjustment loss, an increase in impairment on development properties from certain mixed-residential projects in Singapore, as well as the increase in fair value loss of $2.81 million on financial instrument arising from marked-to-market position.
“It’s encouraging to see our global-based growth strategy gradually yielding fruits, as reflected in the financial results. Oxley’s traditional strength in execution, marketing and sales has been the key in our success. With an asset-light model, we leverage on local partners’ resources to achieve efficient use of capital,” says Oxley’s executive chairman and CEO, Ching Chiat Kwong.
“Financially, we have been reviewing our funding options, seeking to make an optimal balance between having the financial flexibility to capture growth opportunities, strengthening our balance sheet and lowering the gearing in the long run. With estimated strong revenue stream and projects pipeline, Oxley is making solid progress on its way to become a strong property developer with a global reach,” he adds.
Shares of Oxley Holdings closed 0.9% lower at 57 cents on Friday.
