Artist’s impression of LIV on Sophia, an apartment project that is expected to be completed in 2018.
Roxy-Pacific Holdings saw its net profit drop 26 percent to $14.7 million in Q2 2017 from $19.9 million over the same period last year.
Revenue also declined 21 percent from $98.4 million to $77.8 million.
The group attributed the decrease in revenue to lower revenue recognition from Whitehaven, Jade Residences and the absence of revenue recognition from LIV on Sophia.
Nonetheless, Roxy Pacific revealed that its recent launches in Singapore and Australia were warmly received, with Straits Mansions in Singapore fully sold, while Australia’s Octavia and The Hensley were 95 percent and 93 percent sold, respectively.
Its latest launch in West End, Glebe, Australia also received robust response, with 70 percent of the launched units sold within a few hours. To date, 84 percent of the project’s first phase, known as The Foundry, is 84 percent sold, while phase two is slated for launch in H2 2017.
“While the three Australian projects will only contribute positively to the group upon their expected completions in 2018 / 2019, Roxy-Pacific will progressively recognise percentage-of-completion earnings from Straits Mansions,” the company said in a release.
Including Straits Mansions, total attributable pre-sale revenue of the group stood at $469.3 million.
“Recognising the market downcycle, we exercised prudence and took the opportunity to invest in our future growth by replenishing our land bank – freehold sites from the secondary market – at reasonable prices to protect our margins,” said Roxy-Pacific executive chairman and CEO Teo Hong Lim.
The group completed its acquisitions of 211-223A Pasir Panjang Road and 120 Grange Road in Singapore in Q1 2017.
“We remain focused to execute these pipeline projects this year and in FY2018,” he noted.