Ho Bee Land says it expects to report a “significant decrease” in its net profit for the 2HFY2022 and FY2022 ending Dec 31, compared to the same period the year before.
This is despite a y-o-y increase in revenue and operating profit for the period. The higher revenue and operating profit is attributable to the higher number of sales of development properties in Singapore and Australia, as well as higher rental income from investment properties in Singapore and London, says Ho Bee Land.
That said, higher profit was offset by the fair value loss based on indicative valuations of the group’s portfolio of investment properties in London. The fair value loss is non-cash in nature and rose mainly due to higher cap rates.
During the period, the higher profit was also offset by the higher foreign exchange (forex) loss in the FY2022 due to the weaker Australian dollar (AUD) and Euro against the Singapore dollar (SGD). Finally, the rising interest rates, which resulted in a significant increase in the group’s interest expense, also led to the decrease in its overall net profit.
Nevertheless, the group says it expects to remain profitable for the 2HFY2022 and FY2022.
Shares in Ho Bee Land closed flat at $2.37 on Dec 21.
