SINGAPORE Land Group (SingLand) reported a 7 per cent rise in net profit to S$102.4 million in the six months ended Dec 31, 2023, from S$95.3 million in the previous corresponding period.
This was mainly due to fair-value gain on subsidiaries’ investment properties of S$14.5 million in the half year, compared with a S$6.6 million fair-value loss recorded in H2 FY2022, the real estate company said in a regulatory filing on Friday (Feb 23).
Earnings per share, including fair-value gain on investment properties, stood at 7.1 Singapore cents for the half year, up from 6.7 Singapore cents the previous year.
Revenue for the half year rose 3 per cent to S$358.7 million, from S$346.9 million a year earlier. This was largely due to higher income from hotel operations boosted by the recovery of the hospitality sector in Singapore.
However, this was partially offset by lower revenue from property trading as fewer units were sold for two of the group’s residential projects – V on Shenton and Mon Jervois. Property investment also had lower revenue, mainly from the closure of Clifford Centre for redevelopment in January 2023.
A final dividend of 4 Singapore cents per share was proposed for FY2023, up from 3.5 Singapore cents per share the year before, for shareholders’ approval at the annual general meeting on Apr 26, 2024. The date payable will be announced later.
For the full year ended Dec 31, 2023, net profit was down 40 per cent to S$270.8 million, while revenue was up 12 per cent to S$684.6 million.
The revenue increase is largely driven by higher income from hotel operations, as well as from technology operations as there were more software licence sales.
Looking forward, the office sector is likely to face short-term challenges as there will be new supply of office spaces in the first half of 2024, said SingLand. The group also expects modest growth in office rentals in the Central Business District as Singapore’s economy improves.
For the retail sector, the group expects rentals to see moderate improvement from higher tourist arrivals in 2024. This is also as suburban malls remain resilient and workers return to the office.
For the hospitality sector, ongoing macroeconomic headwinds mean there will be a cautious recovery, noted SingLand.
Meanwhile, the residential market is likely to grow at a slower rate in 2024 due to government cooling measures and higher interest rates. Nonetheless, demand will continue to be supported by resilient household balance sheets and a high employment rate.
SingLand shares closed up 0.6 per cent or S$0.01 to S$1.82 on Friday, before the results announcement.
