SINGAPORE (May 23): Property group SingHaiyi reported a 6.1% rise in FY17 earnings to $31.1 million from a year ago on gain from TripleOne Somerset.
For FY17 under review, revenue fell 83.6% to $44.2 million. In the US, the group’s property portfolio generated higher revenue of $34.6 million compared to $18.1 million a year ago.
The higher revenue was generated from the sale of several completed residential units at Vietnam Town but was offset by lower rental income from its Tri-County Mall property in Cincinnati, Ohio, as a result of ongoing Asset Enhancement Initiatives.
With the US property development segment recognising higher revenue during the year, the group’s year-on-year gross profit margin improved by 33.6 percentage points due to its geographical revenue mix.
In March, the group completed the disposal of its 20% stake in Perennial Somerset Investors for $100 million, an entity which holds the TripleOne Somerset property. Other income in FY17 increased year-on-year as a result, representing a gain of $30.5 million during the year.
In Singapore, SingHaiyi has obtained TOP for The Vales, its EC project located at Anchorvale Crescent with more than 97% of its 517 units sold. The group also expects to obtain TOP for City Suites, a 56-unit freehold project at Balestier Road, by the third quarter of 2017.
Development work for the new 10-storey Grade A commercial building at the property formerly known as Park Mall has started since October 2016. SingHaiyi has successfully received an extension of the building’s 99-year lease to Dec 7 2115.
In the US at 5 Thomas Mellon Circle, San Francisco, California, the group’s plans to redevelop the existing office building into a waterfront lifestyle residential property are also underway. In December 2016, SingHaiyi received the project entitlement approval from the San Francisco Planning Commission to develop the project.
Shares of SingHaiyi closed 0.1 cent higher at 12 cents on Tuesday before the results announcement.
