This comes as share of profits from associates declined 85 percent “due to lower sales and profit recognition from a residential development project in Shanghai”.
Ho Bee Land saw its net profit for the first quarter of 2019 drop 44 percent to $27.7 million from $49 million over the same period last year.
This comes as share of profits from associates declined 85 percent “due to lower sales and profit recognition from the residential development project in Shanghai”.
Revenue climbed eight percent to $52.4 million, on the back of strong growth (36 percent) in rental income.
“The increase was due mainly to rental income from Ropemaker Place, a London investment property which was acquired on 15 June 2018,” it said in an SGX filing.
With this, earnings per share for Q1 2019 stood at 4.16 cents.
Looking ahead, Ho Bee Land expects the Singapore office market to remain positive amidst tight supply and stable demand, while the residential market will likely remain challenging due to supply glut and the cooling measures.
“In the United Kingdom, the uncertainties surrounding the Brexit outcome will continue to weigh on the economy. However, the long tenancies of the leases for our London properties will buffer us against any short-term negative impact. In the long term, we remain confident of the resilience of the U.K. economy,” it said.
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Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email fiona@propertyguru.com.sg
