Specialty property and hospitality group Roxy-Pacific Holdings Ltd has posted a net profit after tax of S$21.9 million in the first half of this year, up 39 percent from S$15.7 million over the same period last year.
The increase was due to a 42 percent jump in revenue, which was attributed mainly to a 50 percent increase in revenue coming from the company’s Property Development segment.
“We are very encouraged and pleased to have achieved a record first half performance, driven by higher revenue from all three segments of our business, signalling a strong recovery, in line with the economy,” said Mr. Teo Hong Lim, CEO of Roxy-Pacific, in a press release.
Revenue also increased 27 percent to S$55.4 million in Q2 from S$43.7 million in the same period last year. According to Roxy-Pacific, the improvement in turnover was due to a 25 percent rise in revenue from its Property Development segment, and a 145 percent jump in revenue from its Property Investment segment.
In addition, its Hotel Ownership segment posted a 27 percent jump in revenue in Q2 as a result of an increase in both the average room rate (ARR) and average occupancy rate (AOR).
The group recognised revenue from eight development projects, namely, The Adara, The Ambrosia, The Azzuro, The Florentine, The Lucent, Nova 48, Nova 88 and The Verte in Q2 10.
The company’s Hotel Ownership segment contributed 79 percent of the group’s total revenue in Q2 after it acquired Temporary Occupancy Permit for its The Adara project in June.
The remaining 21 percent of Roxy-Pacific’s turnover for Q2 came from the Property Investment and Hotel Ownership segment. Revenue from the Hotel Ownership division jumped 27 percent to $11.0 million in Q2.
The hotel’s AOR and ARR were up 95 percent and 16 percent in the second quarter, respectively. Overall, its revenue per available room (RevPar) rose by 35 percent to $157.8 in the current quarter from $117.1 in the same period in 2009.
The group’s Property Investment segment also saw significant improvement in Q2 results, after a 145 percent increase in revenue due to the increase in rental gains from the renewal of leases for some of its shop units at Roxy Square and the recognition of rental from Kovan Centre.
Roxy-Pacific expects more profitable results for the rest of the year. “We will continue to exercise prudence as we explore and seize opportunities in the resilient property market,” said Mr. Teo.