MAINBOARD-LISTED Tuan Sing posted a 38.1 per cent fall in net profit for the fiscal first half ended Jun 30, as the real estate company’s finance costs rose 57 per cent to S$32.5 million on rising interest rates, the company said on Friday (Aug 11).

Net profit for the six months ended Jun 30 stood at S$6 million, compared with S$9.7 million posted the same period a year ago. 

The results translate to earnings per share of 0.5 Singapore cent, versus 0.8 Singapore cent a year ago.

Revenue, however, grew 27 per cent to S$144.7 million. The company attributed this to higher revenue from its real estate development, hospitality and real estate investment segments.

High revenue from real estate development came about mainly due to progressive recognition of revenue from units sold in Thomson freehold project Peak Residence, although this was partly offset by lower contribution from Mont Botanik Residence, its other freehold project in Hillview that obtained a temporary occupation permit in February.

On the hospitality front, the group also recorded higher revenue as hotel operations in Melbourne continued to recover following the easing of Covid-19-related restrictions last year.

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This was despite a drop in revenue from Perth’s hotel operations since revenue from the previous corresponding period was boosted by guaranteed payments during the state requisition period. Current operations were also adversely affected by the ongoing asset enhancement works at the Hyatt Regency Perth complex and construction works within the hotel, the group noted.

Revenue from real estate investment grew on stronger performance from the group’s investment properties in Singapore, namely 18 Robinson and Link@896.

The board did not propose an interim dividend for the first half.

In future, the group still has to contend with the twin concerns of rising interest rates and a slower global economic outlook, Tuan Sing’s chief executive officer William Liem cautioned.

Nevertheless, he said: “We remain cautiously optimistic as regards the overall real estate market as we take a long-term view of our business. This is reflected in the many projects we are undertaking in all the markets we are in – Singapore, Indonesia, Australia and China.” 

Shares of Tuan Sing closed flat at S$0.31 on Friday.