SINGAPORE (Aug 10): Real estate group Hiap Hoe is back in the black with 2Q17 earnings of $1.4 million compared to the loss of $3.1 million it posted in the same period a year ago.
A interim dividend of half a cent per share has been declared, to be paid out on Sept 15.
Revenue for the quarter ended June fell 3.1% to $23.2 million from $23.9 million in the previous year on lower rental revenue registered over the quarter, due to the absence of rental revenue from the sale of the group’s development properties as well as Australia properties in the preceding year.
This was offset in part by higher revenue from hotel operations, which was mainly attributed to the inclusion of hotel operations at the Four Points by Sheraton, Melbourne hotel which open in late March this year.
Also included in the current quarter is hotel revenue from Holiday Inn Express Trafford City, Manchester following the completion of the acquisition of the entire issued share capital in Trafford City Hotel on 16 June this year.
Other items of income rose 18.5% to $2.6 million $2.2 million while finance cost fell 41.4% to $1.8 million from $3 million a year ago due to lower interest rates.
Other expenses fell by $0.4 million over the quarter in the absence of an impairment of trade receivables recorded in 2Q16.
Nonetheless, the group registered a profit before tax (PBT) of $2 million over the quarter compared to a loss before tax of $1.5 million in 2Q16.
Hiap Hoe says it intends to continue growing its recurring income base, and will evaluate property development and investment opportunities both locally and overseas. Additionally, the construction of its Marina Tower property in Melbourne is “well in progress” and is targeted for completion by 1Q18.
While it expects the hotel sector to remain competitive, the group says it remains optimistic that its hotel in Manchester will benefit from a higher number of travellers due to the weak pound effect.
Shares in Hiap Hoe closed 1 cent lower at 76 cents on Thursday.
