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MAINBOARD-LISTED property group, Ho Bee Land Limited, on Friday posted a 43.6 per cent drop in its fourth-quarter net profit to S$285.2 million, or earnings per share of 42.7 Singapore cents which is lower than the 75.2 cents on a year-on-year basis.
The lower earnings for the three months ended Dec 31, 2014, was attributable to smaller fair value changes of investment properties of S$281.7 million tied to The Metropolis (S$270 million) and Rose Court (S$11.7 million), compared to S$493.1 million in the corresponding quarter in 2013.
Group turnover for Q4 2014 was down 49 per cent at S$28.9 million, as no revenue came in from sale of development properties, unlike in the Q4 of 2013.
Rental income from the group's commercial, industrial and residential properties rose 110 per cent to S$28.9 million, primarily due to rentals of office buildings, The Metropolis in Singapore, and Rose Court and 1 St Martin's Le Grand in London.
Correspondingly, full-year profit was 46.8 per cent lower at S$315 million.
This represents earnings per share of 47.2 Singapore cents, down from 87.4 cents in 2013.
Revenue for fiscal year 2014 came in 28.5 per cent lower at S$99.6 million, due to the absence of revenue from sale of development properties.
A first and final dividend of five Singapore cents a share has been proposed.
Chua Thian Poh, chairman and CEO of the group, said the property market in Singapore is expected to face stronger headwinds this year.
But he noted that the group is well-positioned to weather the tough environment ahead as it has a "solid base of recurring income" from its office buildings in Singapore and London.