Several smaller property developers are not being left behind by their bigger peers, recording strong results during the first quarter which ended March 31.
Fragrance Group, a property and hotel operator, posted a net profit increase of 42.6 percent to $14.4 million, partially attributed to higher selling prices of its units. Its gross profit margin increased to 42.2 percent from 23.6 percent over the same period in 2009.
The growth in net profit came despite a revenue drop of 17.7 percent to $41.8 million, dragged by the property development division’s lower sales, which accounted for almost 80 percent of the total revenue. Its sales contribution of $32.6 million was down 23.8 percent from 2009’s. The higher sales in its Fragrance Hotel chain’s hotel division had partly offset the decline in revenue. This month, it offered the top bid of $16.3 million for a private residential site along Tampines Road.
Lee Kim Tah Holdings, which owns half of Jurong Point Shopping Mall, posted an 84.5-percent surge in net profit during the first quarter to $9.53 million – due to an increase in sales. The firm reported revenue of $40.8 million, from last year’s $12.6 million – largely attributed to the sales from the completed residential development in Neutral Bay, Australia.
Orchard Parade Holdings, Far East Organization’s subsidiary, also posted a net profit of $9.3 million, up from last year’s $107,000. This was due to a fair-value gain on its investment properties and firmer sales. Revenue more than doubled from $11.7 million to $28.1 million – mainly attributed to the sale of units of its residential development Floridian. The revaluation of its investment properties also gained $1.56 million, contrasting the loss of $3.05 million incurred in 2009.