Property developer Soilbuild has recorded a net profit drop of 47 percent on-year in Q1 2010 to S$10.3 million, and a 50-percent decline of revenue to S$32.5 million.
The company said the weak Q1 result was attributed to a reduction in fair value gains from both derivative financial instruments and investment properties in the same period last year. It also cited the lack of contributions from three residential property developments, which were completed last year.
However, the company gained S$110 million from new sales of 96 residential and business space units during the first quarter this year. It said that rental income from business space increased 40 percent on-year in the first quarter due to higher contributions.
The company said it remains optimistic to meet the S$40-million target for recurrent rental income when its project – Solaris at One-North – is completed in Q4 this year.
Looking forward, Soilbuild expects to remain profitable this year, with the progressive recognition of revenue from sold business and residential space units in the second half of 2010.