Increase in share of profits from AXA Tower offset by net loss in construction business is one of the main factors attributed to the increase in Low Keng Huat’s Q1 revenue. (Image: Perennial Real Estate Holdings Limited)
Property firm Low Keng Huat saw its revenue for the first quarter ended 30 April 2017 increase by seven percent to S$16.9 million while its net profit soared 65 percent to S$5.4 million.
The group attributed the increase primarily to higher profits from its investment and development segments.
While revenue fell by S$0.2 million to S$4.4 million in Q1 2017, the group’s investment division posted a net profit before tax and controlling interests of S$2.7 million in Q1 2017, up S$2.2 million from the S$0.5 million registered previously.
“The increase was mainly due to the decrease in share of losses from Westgate Tower, increase in other income from disposal of long-term quoted equity investment, increase in share of profits from AXA Tower offset by net loss in construction business,” it said in an SGX filing.
Notably, the Westgate Tower had an occupancy rate of 99.5 percent as at 12 June 2017.
Its development division, on the other hand, recorded a net profit before tax and controlling interest of S$3.7 million, up S$2.3 million from the S$4.1 million recorded in Q1 2016.
“The increase was due to the sale of two office units at PLS and four residential units at Parkland Residences,” said the group, noting that PLS is fully sold as at 12 June 2017, while one residential unit remain unsold at Parkland residences.
Despite the sluggish property market, the property firm noted that the recent land sales by the government still attracted foreign developers as well as high bidding prices.
With this, the group “will continue to be selective in land bidding and investment projects”.
This article was edited by Denise Djong.
