Metro Holdings recorded 2HFY2021 ended March earnings of $17 million, 50.5% higher y-o-y from $11.3 million previously.
This brings FY2021 earnings $36.8 million, up 14% y-o-y from FY2020’s $33.1 million, which the group points out included a one-off divestment gain of $10.6 million.
Earnings per share (EPS) for FY2021 stood at 4.4 cents, compared to 3.9 cents the previous year.
Metro recorded higher earnings despite a 53.7% y-o-y fall in FY2021 revenue to $97.3 million driven by Covid-19, which Metro says impacted the sale of property rights of the residential development properties in Jakarta, and saw the closure of Metro’s two Singapore stores during the circuit breaker.
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To that end, Metro’s FY2021 revenue from the sale of property rights dropped 91.2% to $17.9 million, while its retail revenue dropped 33.2% to $72.8 million.
The group attributes the higher earnings to higher contributions and fair value gains from investment properties in China, in addition to lower losses incurred by associates and fair value gain from short-term investments.
The group recorded a fair value gain on investment property of $0.5 million in FY2021 as compared to a fair value loss of $2.5 million in FY2020 arising from the pandemic. Meanwhile, the group’s share of associates’ loss decreased to $20.6 million in FY2021, as compared to a loss of $29.7 million in FY2020.
Share of profit of joint ventures increased from $55.9 million in FY2020 to $64.1 million in FY2021 mainly due higher contributions from The Crest and Tampines Grande in Singapore as well as its Metro City and Metro Tower in Shanghai, underpinned by the strong recovery of the China economy.
Metro’s cash and cash equivalents stood at $425.7 million as of March 31, compared to $349.4 million in the corresponding period the previous year.
The board has recommended dividends totalling 2.25 cents per share comprising an ordinary final dividend of 2 cents per share and a special dividend of 0.25 cents per share. This translates to a payout ratio of 50.7% of the group’s FY2021 earnings.
In a statement released with its results, Metro notes that “high uncertainty continues to surround the global economic outlook”.
“The group operates across Singapore, China, Indonesia, the UK and Australia, with each country being in a different phase of the global pandemic. We will continue to monitor, embrace and evolve our growth strategies, building upon our established track record in the real estate sector,” says Winston Choo, Metro chairman.
The group also highlighted its push for diversification throughout FY2021, including investing in a 26% stake in Boustead Industrial Fund, which has a portfolio of 14 industrial, business park, high-spec industrial and logistics properties; acquisitions of purpose-built student accommodation in the UK, and the acquisition of Ropes Crossing Village Shopping Centre in New South Wales, Australia.
The group also recently invested in EUR10 million ($16 million) into an European logistics fund with 12 income-producing assets across Poland, the UK and Spain
Shares in Metro closed 0.5 cents or 0.68% higher at 74 cents on May 24.
