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
DBS customers unable to log into digibank, PayLah! on Thursday
NYSE-parent ICE’s revenue misses as muted IPO markets offset record energy trading
Amazon bets big with CrowdStrike on cybersecurity products
Goldman Sachs scraps EU-era bonus cap for top bankers in UK: source
Thomson Reuters lifts 2024 forecast on first quarter revenue result
US: Wall St opens higher after Fed leaves interest rates alone