Earnings Brief: Ho Bee Land Ltd, City Developments Limited and Frasers Centrepoint Ltd

Three property companies released their latest financial results either yesterday evening or this morning. Here are some quick highlights from the earnings announcements:

1. Ho Bee Land Ltd (SGX: H13)

a) For the third quarter ended 30 September 2017, revenue fell 6.9% year-on-year to S$43.7 million. The fall was due to a 63% slump in revenue from the sale of development properties, which was partially offset by a 12.4% increase in rental income to S$39.3 million.

b) Share of profits from associates ballooned more than six times to S$28.7 million, which was mainly from a joint venture project in Shanghai, China. Meanwhile, share of profits from jointly controlled entities surged 268% to S$2.6 million with the main contributor being a residential project in Tangshan, China.

c) Net profit grew 103.5% to S$54.4 million.

d) As for the outlook, the property developer and investor said: “In Singapore, the outlook for the residential and commercial property markets has improved. Although the Brexit situation in U.K. is still uncertain, we are confident of the long term investment prospects. With the sustainable recurring income from our portfolio of investment properties in Singapore and U.K., coupled with the development profits from China and Australia, we remain profitable for the year. We will continue to seek business opportunities locally and overseas”.

2. City Developments Limited (SGX: C09)

a) For the third quarter ended 30 September 2017, revenue dropped 6.5% year-on-year to S$863.1 million.

b) Share of after-tax profit of associates and joint ventures grew 10.4% to S$18.2 million.

c) Profit before tax grew 10.4% to S$449.7 million.

d) Net profit slumped 8.3% to S$156.4 million.

e) Shareholders will receive an interim dividend of 4.0 Singapore cents per ordinary share for the latest quarter, unchanged from last year.

f) With regards to its prospects, City Developments said that it is positive regarding the prospects of the property market in Singapore, which continues to show improved fundamentals. It also added that it would be focusing on new acquisitions and investments, both here and overseas.

3. Frasers Centrepoint Ltd (SGX: TQ5)

a) For the full year ended 30 September 2017, revenue swelled 17.1% year-on-year to S$4.03 billion. The increase was largely from higher contributions from the Australia strategic business unit and international business unit.

b) Share of results of joint ventures and associates, net of tax, grew 8.1% to S$185.2 million.

b) Profit attributable to shareholders, before fair value change and exceptional items, climbed 1.7% to S$488.2 million. Profit attributable to shareholders improved 15.4% to S$689.1 million, mainly due to a S$215 million fair value gain on investment properties.

c) The board has proposed a final dividend of 6.2 Singapore cents per share for the fourth quarter. Including the interim dividend of 2.4 cents already paid out, the total dividend for the full year would be maintained at 8.6 Singapore cents per share.

d) Going forward, the firm said that it would continue to grow its businesses and asset portfolio prudently across geographies and business segments. It is also looking to grow its recurring income from a geographically-diversified earnings base, and seeking to optimise capital productivity and strengthen its real estate investment trusts.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.