PROPERTY group Tuan Sing reported on Thursday (Aug 8) a net loss of S$6.6 million for the half-year ended June, as compared with a net profit of S$6 million in H1 last year.
This loss was mainly due to lower profit contribution from Link@896 due to its asset-enhancement works, as well as operating costs incurred from its Batam Opus Bay development, said Tuan Sing.
Revenue for the period declined 26 per cent to S$106.5 million from S$144.7 million a year ago. This was largely due to lower contributions from the group ’s real estate development and real estate investment segments, which were partly offset by higher revenue from its hospitality sector, it noted.
The group’s hospitality sector performed well, with a 6 per cent increase in revenue on year to S$44.8 million. Both its hotel operations in Melbourne and Perth turned in a stronger performance, boosted by improved occupancies and revenue per available room.
Revenue from its real estate development was down 57 per cent to S$31.6 million on lower progressive revenue recognition of units sold in Peak Residence.
The real estate investment sector, at the same time, registered a 10 per cent decline in revenue at S$27.4 million, mainly on the lower contribution from Link@896. The group highlighted that the shopping mall’s occupancy rate was affected by the commencement of asset-enhancement works during the period.
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Loss per share for the period stood at S$0.0054, from the earnings per share of S$0.0049 in the previous H1.
No interim dividend for the half-year period is recommended, said the group.
It highlighted that several developments in the second half-year are expected to contribute to recurring income stream in 2024 and beyond.
“In Singapore, the group has just taken possession of the property known as Fraser Residence River Promenade, a mixed-use development comprising 72 serviced apartments, three conservation warehouses and 47 car park lots, strategically located within Robertson Quay,” it added, noting that this acquisition is part of the group’s broader growth strategy to expand its hospitality business.
This new acquisition is expected to contribute to the group’s performance in H2.
The July divestment of a majority of indirect investments in a parcel of greenfield land in Fuzhou, Fujian, China, is expected to provide a gain of S$18.5 million upon completion, the group noted.
Shares of Tuan Sing closed Thursday down 4.5 per cent or S$0.01 at S$0.21.
