SINGAPORE (Aug 12): Ho Bee Land saw its earnings jump to $71.5 million for the 2Q ended June, nearly doubling from earnings of $36.1 million a year ago.
This was mainly attributed to the sale of a 30-year leasehold interest in a petrol station site located along Bukit Timah Road, which saw a fair value gain on investment property amounting to $28.3 million.
In addition, the group saw an increase in its share of profit in its joint venture projects in Shanghai and Zhuhai in China.
Total 2Q18 revenue rose 16.1% to $43.4 million, from $37.4 million a year ago.
The increase was due mainly to higher rental revenue from London properties 67 Lombard Street and Ropemaker Place, which were acquired in June 2017 and June 2018, respectively.
Earnings per share (EPS) for 2Q18 grew to 10.74 cents, compared to 5.42 cents a year ago.
As at end June, cash and cash equivalents stood at $102.9 million.
“The Singapore government has recently announced a slew of tough cooling measures targeted at the residential market. These measures will have minimal impact on the group’s performance,” says Chua Thian Poh, Ho Bee Land’s chairman and CEO.
“Our strategic decision to diversify into other markets and grow our recurrent income base has placed us in a good position for sustainable growth,” he adds.
Shares in Ho Bee Land closed flat at $2.54 on Friday.
