Singapore Land Group U06 has reported earnings of $95.3 million for the 2HFY2022 ended Dec 31, 2022, 60% lower than earnings of $239.0 million in the corresponding period the year before.
The lower y-o-y earnings were attributable to the absence of other gain on disposal of an associate during the 2HFY2022 and the fair value loss compared to the fair value gain in the 2HFY2021.
For the FY2022, the group’s earnings improved by 37% y-o-y to $455.1 million due to the higher revenue and increase in fair value gain but offset by the absence of other gain on disposal of an associate.
During the 2HFY2022, revenue increased by 26% y-o-y to $346.9 million mainly due to higher revenue from the group’s hotel operations on the back of the recovery of Singapore’s hospitality sector. The higher revenue was also attributable to the higher revenue from property trading as more units were sold for the V on Shenton and Mon Jervois residential projects. The higher revenue in the group’s technology operations, which was due to higher hardware and software sales, also contributed to the y-o-y growth of 2HFY2022’s revenue on the whole.
The higher revenues from the segments were, however, partly offset by lower revenue from property investment by $8.9 million due to the non-renewals of leases at Singapore Land Towers in view of ongoing extensive asset enhancement initiative (AEI) works.
Gross profit increased by 7% y-o-y to $130.6 million as a result of the higher revenue.
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2HFY2022 interest income under other income jumped by 2.8 times to $14.6 million from $5.3 million in the 2HFY2021. This was due to higher contribution from Park Eleven Shanghai project and higher share of profits recognised from development progress for Avenue South Residence and Clavon residential projects in the six-month period.
During the same period, there was a reversal of impairment loss of $21,000 compared to the impairment loss of $2.1 million in the year before.
Share of results of associates surged by 198% y-o-y to a profit of $41.4 million mainly due to higher contribution from Park Eleven Shanghai project and higher share of profits recognised from development progress for Avenue South Residence and Clavon residential projects this period.
At the same time, share of results of joint ventures (JVs) fell into a loss of $12.6 million from the profit of $11.1 million the year before. The lower share of results of JVs were mainly due to higher share of fair value loss on joint venture’s investment property of $13.3 million from $2.0 million in the 2HFY2021, as well as lower contribution from The Tre Ver residential project.
Profit before fair value and other gains increased by 11% y-o-y to $138.6 million but this was offset by the absence of other gain on disposal of an associate compared to the $37.6 million received in the 2HFY2021.
The group also reported a fair value loss of $7.2 million in the 2HFY2022, down from the fair value gain of $102.8 million in the same period the year before, leading to a 50% y-o-y decline in 2HFY2022’s profit before tax.
In the FY2022, revenue grew by 21% y-o-y to $611.0 million.
Gross profit grew by 11% y-o-y to $242.1 million.
Other interest income surged by 123% y-o-y to $21.8 million due to higher interest earned on shareholder’s loan extended for the development of the various residential projects.
The FY2022 saw a reversal of impairment loss of $99,000 compared to the impairment loss of $3.2 million in the year before.
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Share of results of associates surged by 221% y-o-y to a profit of $80 million while share of results of JVs fell by 98% y-o-y to a profit of $571,000.
Profit before fair value and other gains increased by 25% y-o-y to $280.8 million but this was offset by the absence of other gain on disposal of an associate compared to the FY2021.
During the year, the group reported an overall surge in fair value gain of $233.0 million, 121% higher y-o-y.
As at Dec 31, 2022, cash and cash equivalents stood at $180.2 million.
The group’s net asset value (NAV) per share stood at $5.57 as at Dec 31, 2022. Earnings per share (EPS) for the FY2022 stood at 31.8 cents and 6.7 cents for the 2HFY2022. The EPS include fair value gain/loss on investment properties.
The group’s gearing ratio net of cash stood at 2.5% as at Dec 31, 2022, down from 3.9% in the year before.
A first and final dividend of 3.5 cents per share has been declared, unchanged from the year before.
Shares in Singapore Land Group closed 2 cents higher or 0.86% up at $2.34 on Feb 24.
