SINGAPORE (Nov 9): TA Corp, the property construction group, has reported a loss of $4.2 million for the third quarter ended Sept, a 57.6% improvement from its $10 mil loss posted in 3Q16, mainly due to lower impairment loss on investment properties.
Revenue for the quarter grew by 2% to $51.1 million from $50.1 million a year ago. In line with the higher revenue, gross profit increased 0.7% to $9.3 million from $9.2 million in 3Q16.
Other operating expenses fell significantly by 52.8% over the quarter to $8.1 million compared to $17.3 million in the previous year due to lower loss in fair value of investment properties.
The latest quarter under review brings the group’s 9M17 loss to $15.2 million compared to its $9.8 million loss a year ago.
Revenue for 9M17 grew 14.8% to $159 million on higher contributions across all business segments.
However, a spike in other operating expenses dragged on the group’s bottomline for 9M17 with a higher loss in fair value of its investment properties, mainly on Tuas South Dormitory, as well as allowance for doubtful receivables.
As at end Sept, the group’s net asset value (NAV) per share was 38.5 cents compared to 43.5 cents as at end-2016. Its cash and bank balances stood at $74.5 million with total borrowings of $366.4 million.
“While the Group saw higher revenue contribution from real estate investment segment, boosted by the higher occupancy rate of our Tuas South Dormitory compared to a year ago, rental rates continued to be undermined by the weak business environment,” comments TA Corp’s CEO and executive director, Neo Tiam Boon.
In his view, TA Corp is well-positioned to expand into the PPVC business in Singapore and Malaysia.
The group intends to stay focused and cautious while seeking business opportunities locally and overseas to grow its revenue streams.
“Moving forward, we will continue to tap our experience in management of workers’ dormitories to raise occupancy and rental rates despite the difficult market conditions,” Neo adds.
Shares in TA Corp closed flat at 22 cents on Thursday.
