SINGAPORE (May 10): Property group Wing Tai Holdings reported an eightfold surge in 9M earnings ended March to $89 million from $10.6 million a year ago.
The group recorded 9M total revenue of $267.5 million, 31% higher than the $204.6 million recorded a year ago. This increase is largely due to the higher contributions from development properties.
The current period revenue from development properties was mainly attributable to the additional units sold in Le Nouvel Ardmore in Singapore and the contribution from BM Mahkota in Penang. BM Mahkota obtained its Temporary Occupation Permit (TOP) in the current period and the revenue for the units sold has been fully recognised.
The group recorded operating profit of $24.9 million in the current period as compared to $1.2 million in the corresponding period mainly due to higher contributions from Le Nouvel Ardmore and BM Mahkota as well as the gain on disposal of Huai Hai project in Shanghai.
The group’s share of profits of associated and joint venture companies increased by 133% to $96.3 million in the current period from $41.2 million in the corresponding period, largely due to the group’s share of gain recognised by Wing Tai Properties in Hong Kong from the disposal of Winner Godown Building, an industrial building located in Tsuen Wan.
In addition, there was contribution from Malaren Gardens in Shanghai from the residential units sold to date and handed over to purchasers in the current period.
In April, the group together with Abacus Property Group entered into a contract of sale to acquire 464 St Kilda Road in Melbourne as tenants in common in equal shares. The property is an office building which also provides for car parking spaces on site and at a neighbouring property. The total consideration for the acquisition is A$95.38 million ($95.6 million) and is expected to complete by the end of May.
Looking ahead, Wing Tai says it will continue to look for investment opportunities in Singapore and overseas markets.
Shares in Wing Tai closed 1 cent lower at $2.03 on Thursday.
