Soilbuild Group said that its net profit in Q2 jumped 66 percent to $32.7 million despite a 24 percent drop in revenue to $73.6 million.
Revenue was 26 percent less year-on-year at $69 million. This is mainly due to lower contributions from property development, with no contributions recorded from its two residential projects, Leonie Parc View and The Centrio, in the second half of last year.
The group’s contributions from property rental increased 31 percent to $4.6 million, though this could not compensate the weak performance of its property development arm.
Overall, Soilbuild’s quarterly results improved due to the fair value gains of $16 million after revaluating investment properties Solaris and Tuas Connection.
The group’s net profit in the first six months rose 10 percent to $42.7 million, while revenue dropped 34 percent to $106.1 million due to lower property development contributions.
“Our rental income from the business space portfolio continued to grow in H1, supporting our maiden interim dividend,” said Low Soon Sim, executive director of Soilbuild Group. He believes recurrent income will grow next year as the economy improves.
The group expects to begin marketing Goodvine and West Park BizCentral for lease in the second half, while pre-commitments for Solaris at one-north have increased to 60 percent of net lettable area.
Soilbuild is also expected to launch North Point BizHub in the second half.