Earnings of Singapore Land Group (SLG) came in at $92.2 million in 1HFY21 ended June, a reversal from the losses of $34.3 million reported in the year before.
On a fully diluted basis, earnings per share was 6.4 cents in 1HFY21, compared to losses per share of 2.4 cents in the previous year.
With this net asset value per ordinary share was $5.18 on June 30, up from $5.12 on Dec 31.
Revenue for the first six months of the year shrank by 13% to $43.1 million follow a slowdown across its different segments.
Revenue from property trading was down 66% to $12.2 million as less units were sold for the V on Shenton residential project. Similarly, revenue from hotel operations was down 24% due to the continuing impact of Covid-19, while that from technology operations edged down by 9% due to a backlog in order deliveries as a result of a global shortage in computer chips.
Cost of sales was down 14% to $195.3 million, in line with the lower revenue.
Gross profit for 1HFY21 came in at $97.0 million down 10% y-o-y.
Other income – comprising interest and miscellaneous income – saw a considerable decline in 1HFY21. Interest income was down 17% to $4.5 million due to lower interest rates earned from deposits to financial institutions and loans to joint ventures.
Miscellaneous income plunged by 66% to $4.6 million as the rebates and grants given out by the government softened.
In this time, selling and distribution expenses declined by 19% to $9.6 million due to lower sales, show flat expenses and advertising and promotion expenses.
Administrative costs softened by 2% to $14/6 million, while finance expenses dropped by 24% to $4.7 million due to a decline in interest expense on bank borrowings
Excluding fair value and gains/losses, the group’s earnings was up 7% y-o-y to $89.6 million thanks to a higher share of results of associates and joint ventures.
Share of operating profits of joint ventures was back in the green at $13.1 million, due to the recognition of progress of the development of The Tre Ver residential project this year.
The joint ventures also got a lift from a $0.2 million fair value gain on investment properties, compared to a $11.0 loss in the year before.
Share of results of associates edged up by 2% to $11.0 million even though the share of operating profits was affected by lower contributions from Park Eleven (Shanghai project) arising from fewer handover of units and poorer performance by the hotels.
This was largely offset by the fair value gain on investment properties of $0.3 million recorded, as opposed to the $4.4 million loss in the corresponding period last year.
As at Jun 30, cash and cash equivalents stood at $152.8 million, down from $164.6 million in 1HFY20.
No dividend has been recommended for the half year period, in line with the group’s usual practice.
Shares of SLG closed flat at $2.70 on August 6, before its results announcement.
Cover photo: file photo
