SINGAPORE (July 31): Roxy-Pacific Holdings saw its earnings fall 57% to $6.4 million for the 2Q ended June, from $14.7 million a year ago.
2Q18 revenue fell 52% to $37.0 million, from $77.8 million a year ago.
Revenue from its Property Development segment, which made up 61% of the group’s turnover, decreased 65% to $22.4 million in 2Q18, from $63.8 million a year ago. This was largely due to lower revenue recognition from Trilive, which received its TOP in June 2018, and absence of revenue recognition from Jade Residences, Whitehaven and LIV on Wilkie following the completion of these projects in 2017.
Revenue from the Property Investment segment was $1 million lower at $2.1 million in 2Q18, mainly due to the sale of an investment property at 59 Goulburn Street in October 2017.
The decline was partially mitigated by revenue from the Hotel Ownership segment, which rose to $12.5 million in 2Q18, from $10.9 million a year ago. The increase was mainly due to contribution from its newly acquired hotel in Osaka, Japan and higher revenue from its resort in Maldives after its partial opening.
As at end June, cash and cash equivalents stood at $215.2 million.
Roxy-Pacific says it has accumulated total attributable pre-sale revenue of $605.0 million, the profits of which will be progressively recognised from 3Q18 to FY21.
The board has proposed an interim cash dividend of 0.195 cent per share, representing a dividend payout ratio of 19%.
Looking ahead, the group says the recent property cooling measures in Singapore have the potential of slowing market developments, it does not equate a total standstill.
“We’ve replenished our sites relatively early into the cycle, before the en bloc fever, at very reasonable prices. Our past track record of successful sales launches in Singapore also demonstrates our ability to launch projects that are well-differentiated, which has been well-received by the market,” says Teo Hong Lim, executive chairman and CEO of Roxy-Pacific.
According to Teo, Roxy-Pacific will continue to monitor the Singapore residential market closely to time its upcoming launches appropriately, and continue to take a prudent stance to land acquisitions.
“We’re on the lookout for yield-accretive investments to redeploy our capital, while we strengthen our recurring income streams through our Hotel Ownership business, which is seeing a growth in contributions in recent quarters,” Teo adds.
Shares of Roxy-Pacific closed flat at 44 cents on Tuesday.
