Ho Bee Land, a leading developer of luxury homes in Sentosa Cove, has reported a 47 percent profit drop to $315 million in 2014 from the previous year.
In the fourth quarter, net profit achieved was $285.2 million, down from $506 million in Q4 2013.
The decline was attributed to lower gains in fair value investment properties, which moderated to $281.7 million from a high of $493.1 million in 2013 due primarily to the completion of The Metropolis, a commercial property in one-north.
Group turnover for 2014 decreased 29 percent from $139.3 million last year to $99.6 million due to the absence of revenue recognition for the sale of development properties.
However, rental income in the year shot up 224 percent from $30.7 million to $99.6 million, coming mainly from its portfolio of office buildings in Singapore and London.
Group Chairman and CEO Chua Thian Poh said: “The property market in Singapore is expected to face stronger headwinds in 2015. However, with our solid base of recurring income from our office buildings in Singapore and London, we are well positioned to weather the challenging environment ahead.”
Ho Bee’s overseas property portfolio includes 1 St Martin’s Le Grand, Rose Court and 60 St Martin’s Lane in London.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
