SINGAPORE (Feb 27): Roxy-Pacific Holdings posts a 4% decline in earnings to $11.9 million in the fourth quarter ended Dec 31, from $12.3 million a year ago.
This was mainly due to lower other operating income and higher other operating expenses during the quarter.
Other operating income fell 57% to $2.0 million, from $4.7 million a year ago, mainly due to lower net fair value gain on investment property.
Other operating expenses increased to $6.8 million in the quarter, from $2.7 million a year ago, mainly due to higher depreciation expenses, operating expenses incurred on the resort in Maldives, and higher fair value gain on cross currency interest rate swap.
Revenue in the quarter grew 14% to $93.1 million, from $81.4 million a year ago.
Revenue from its property development segment, which accounts for 84% of total revenue, grew 17% to $78.6 million in the quarter.
This was largely attributable to higher revenue recognition from Trilive, LIV on Sophia and LIV on Wilkie, partially offset by lower revenue recognition from Jade Residences and Whitehaven.
Roxy-Pacific’s property investment segment also grew 17%, to $3.3 million, mainly due to higher occupancy from office units at 59 Goulburn Street.
Roxy-Pacific has proposed a special dividend of 0.622 cents per share to commemorate its eighth year of listing, as well as a final dividend of 0.542 cents per share.
Together with an interim dividend of 0.503 cents per share paid out earlier, this brings total dividends for the full year up to 1.667 cents per share.
As at Dec 31, 2016, cash and cash equivalents stood at $237.3 million.
“Amidst softer market conditions, opportunities remain and we continue to be on the lookout selectively for suitable land banks for development,” says Roxy-Pacific’s executive chairman and CEO, Teo Hong Lim.
“At the same time, we remain focused on operating hospitality assets and yield-accretive property investments that will provide a steady stream of recurring income,” Teo adds.
Shares in Roxy-Pacific last closed at 52 cents on Friday.
