Ho Bee's recurring income strategy reaping dividends
Group also keeps an eye on crystallising capital gains
THE most noteworthy feature of Ho Bee Land's financial results for the year ended Dec 31, 2015, is the surge in rental income, which attests to the group's success in building a business model with a strong base of recurring income.
The group used to be a very different animal. Ho Bee Investment, as it used to be called, was a stockmarket darling in 2006-2010 when it reaped bumper profits from developing homes in the waterfront residential enclave of Sentosa Cove.
Since the 2008 Global Financial Crisis (GFC), foreign buying - which had propped up the high-end residential market prior to the crisis - has not returned in a big way. GFC also caused Ho Bee's top brass to rethink the group's strategy of relying almost entirely on property development, a model based on rapid recycling of capital through pre-sales of homes.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Porsche posts Q1 profit drop on ramp-up costs
IBM plots US$730 million expansion of Canadian semiconductor site
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Yeo Guat Kwang, John Chen retiring from corporate boards
US: Wall St opens higher
Air China orders homegrown C919s in challenge to jet duopoly