The property developer’s half-year revenue tumbles 85% to S$38.7 million, from S$257.9 million the previous year
[SINGAPORE] Property developer Low Keng Huat has sunk into the red with a net loss of S$10.2 million for its first half ended Jul 31, compared with a net profit of S$5.8 million in the previous corresponding period.
Its drop in revenue was mainly driven by the tail-end of the Klimt Cairnhill project. With all units already sold, only the final 1 per cent of the project’s revenue was recognised in the current period, as the development reached 99 per cent completion, the company said in a bourse filing on Thursday (Sep 11).
In contrast, the higher revenue booked in the year-ago period came from faster construction progress and the sale of 31 additional units. By July 31, 2024, the project was 82 per cent complete, and had sold 121 of its 138 units.
The group’s profitability was further hit by a fair-value loss on financial assets at fair-value profit or loss, net foreign exchange losses and higher tax expenses associated with the temporary occupation permit for the Klimt Cainhill project.
Loss per share stood at 1.38 Singapore cents per share for the half-year period, from earnings per share of 0.78 cent in the previous year.
Revenue tumbled 85 per cent to S$38.7 million, from S$257.9 million the previous year. Aside from the lower contributions to the property development segment from the Cairnhill project, the group also booked revenue declines in its remaining two hotel and investment segments.
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No dividend was declared for the half-year, unchanged from the year before.
Most of the decreases were recorded in its hotel and investment segments. Revenue from the hotel segment fell to S$22.6 million, from S$23 million, driven primarily by lower revenue at Lyf @ Farrer, due to lower average daily rates and occupancy.
Citadines Balestier also recorded a decline in revenue due to lower average daily rates, despite higher occupancy.
Separately, revenue from the investment segment fell to S$9.2 million, from S$9.5 million.
The drop was mainly due to the exit of a tenant in Paya Lebar Square retail mall, which hit overall income, though this was partially offset by positive rental reversions from other tenants.
Presenting its outlook, the company said that the outlook for property developers remains “stable but cautious” amid ongoing global and domestic uncertainties.
“Developers may adjust prices in response to softer demand,” it added. “Still, recent government land sales have sparked increased interest in selective sites, indicating a measured appetite for future projects.”
Further, while interest rates are easing, buyers are expected to remain discerning.
With the completion of the Klimt Cairnhill project, revenue from the development segment is expected to decline in FY2026. To drive future growth, the group – together with a joint venture partner – secured a residential site in Canberra Crescent in August 2024, holding a 30 per cent equity stake.
The project, Canberra Crescent Residences, was launched in July 2025. More than half the units have been sold to date. In parallel, the group continues to explore new acquisitions and investments and expand its land bank, to ensure sustainable shareholder returns amid a shifting economic landscape.
Separately, for the hotel segment, the Duxton Hotel Perth is expected to benefit from ongoing refurbishment works. But growth in the serviced apartment segment will likely remain modest.
Meanwhile, the retail mall Paya Lebar Square continues to maintain healthy occupancy levels, despite softer consumer spending, increased outbound travel and intensifying e-commerce competition. The mall’s operational performance is expected to remain resilient.
Shares of Low Keng Huat closed S$0.005 or 0.94 per cent higher at S$0.535 on Thursday, before the announcement.
