SINGAPORE (May 5): Roxy-Pacific Holdings, the property and hospitality group, has announced earnings of $5.9 million for the 1Q ended March, 40% down from $9.9 million a year ago.
Group revenue declined 36% to $65.4 million from $103 million previously on the back of lower contributions from the property development and hotel ownership segments, which fell 41% and 10% respectively to $51.7 million and $10.5 million over the quarter.
The decrease in revenue from property development was largely a result of lower revenue recognition from Jade Residences, Whitehaven, and absence of revenue recognition from LIV on Sophia following the completion of these projects in 4Q16 and early 2017.
This was however partially offset by higher revenue recognition on construction progress of Trilive.
The hotel ownership segment, which contributed 16% to the group’s turnover fell mainly because of lower revenue per available room (RevPAR) from Grand Mercure Roxy Hotel.
Revenue from the property investment segment constituted the balance of 5% of the group’s turnover and contributed $3.2 million as compared to $3 million in 1Q16 due to higher rental rate of office units at 59 Goulburn Street as compared to 1Q16.
In line with the lower revenue, cost of sales fell 39% to $49.1 million from $79.9 million in 1Q16.
In its Friday filing to the SGX, Roxy-Pacific shares that its most recent project launch, Straits Mansions received warm reception from buyers and is currently 100% sold.
It also completed new development site acquisitions along Grange Road and Pasir Panjang Road in Singapore over the quarter, which are expected to contribute positive to the group’s performance going forward.
In Australia, Roxy-Pacific says its latest project, West End Glebe – The Foundry, has likewise received warm reception and is over 60% sold since its launch. The group expects the property to contribute positively to its profits upon its completion in 2019.
Following the launch of its Noku Roxy hospitality brand name upon the opening of its first upscale boutique hotel in Kyoto, Japan, Roxy-Pacific says it looks forward to bringing its hospitality brand to the rest of Asia, with a resort in Maldives scheduled to open by 4Q17 and Phuket to follow in 2019.
The group’s directors continue to expect Roxy-Pacific to remain profitable throughout the year.
Shares of Roxy-Pacific closed at 50 cents.
