Singapore property developer Ho Bee Group has recorded a 55.3 percent year-on-year decline in net profit in the second quarter to S$57.2 million, on the back of a 42.5 percent drop in Q2 revenue to S$157.6 million.
The decline in Q2 results was mainly driven by lower revenue recognition at its developments, compared to the previous year, when results were boosted by the completion of the company’s Turquoise condo project at Sentosa Cove.
On the positive side, the company said it has sold the remaining three office floors at Samsung Hub for a total of S$100.9 million, and S$13.9 million resulting capital gains will be booked in the second half of this year.
Chua Thian Poh, Chairman and CEO of Ho Bee Group, said the company’s earnings for the next two quarters of 2011, along with the progressive recognition of income from the sales of residential and industrial projects, will continue to be positive.
“The construction of our 1.2 million sq ft flagship (office) investment project at one-north, The Metropolis, is progressing well and is expected to be completed by the fourth quarter of 2013.”
To date, the company has sold 47 percent of the 91-unit Turquoise condo at Sentosa Cove, while 25 percent of the 151-unit Seascape development has been snapped up.
Ho Bee’s S$820 million office development at one-north, which is expected to become a Green Mark Platinum certified project, has a total net lettable area (NLA) of around 1.04 million sq ft across two towers.
Meanwhile, 76 percent of the company’s One Pemimpin industrial project has been sold. Construction of the 115-strata unit project is expected to be completed by mid-2012.
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