SINGAPORE (May 23): Pollux Properties reported full-year earnings surged nearly 20 times to $51.8 million in FY18 from $2.6 million a year ago in FY17.
This came on the back of higher other income which increased by $61.06 million to $61.59 million in FY18 mainly due to a $61.31 million gain from the bargain purchase of Pollux Alpha Investments (PAI) Group from its parent company Pollux Holdings for $201 million.
See: Pollux Properties to undertake $145 mil new share issuance to acquire PAI Group
FY18 group revenue decreased 48.8% to $15.3 million as the group had obtained TOP for just one development given most other developments had obtained their TOP and had their revenue recognised in previous fiscal years. Serviced apartment Louis Kienne Serviced Residences at 554 Havelock Road also contributed $5.27 million in revenue.
Rental income from the residential segment was generated by 14 newly acquired residential units from PAI while rental from the commercial units was generated from two retail investment properties located along Balestier Road and office building MacDonald House which was also acquired from PAI.
As at March 31, the group's cash and cash equivalents stood at $19.17 million compared to $3.19 million as at March 31 2017.
In its outlook, Pollux says as Singapore’s property market remains challenging, the group will be cautious when replenishing its land bank and seeking investment assets that can provide sustainable return to shareholders.
Pollux believes with Louis Kienne Serviced Residences, growth of the associate fund management company Stirling Fort Capital and PAI, its broader revenue streams will provide stable long-term recurring income for the group.
Shares of Pollux last traded at 2.4 cents in May 11.
