Bukit Sembawang FY2021 earnings more than double; proposes higher special dividend

BUKIT Sembawang Estates saw its earnings more than double for the financial year 2021 to March, on higher profit booked from development projects, absence of impairment loss as well as lower borrowing costs.

Given its stellar results, the company has recommended a special dividend of 29 Singapore cents on top of a final dividend of four Singapore cents. The company's special dividend was seven Singapore cents last year while its final dividend was also four Singapore cents.

In its financial results filed to the Singapore Exchange on Tuesday, the mainboard-listed property developer reported net profit of S$189.4 million for the year, 149 per cent higher than S$76.1 million a year earlier.

Bukit Sembawang's top line was S$581.0 million, 57 per cent higher year-on-year than S$369.7 million.

The company's improved results were due to a confluence of factors.

Apart from higher profit booked on development projects, there was also absence of a S$44 million impairment loss on property, plant and equipment relating to Fraser Residence Orchard, Singapore.

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Finance costs were S$6 million lower, primarily due to lower borrowing costs on loan relating to The Atelier and LIV@MB. This has helped boost the bottom line.

Earnings per share as at March 31 stood at 73.17 Singapore cents, whereas that a year ago was 29.38 Singapore cents. Net asset value per share was S$5.73 as at March 31, higher than S$5.11 a year earlier.

The company's recommended final dividend of four Singapore cents per share for financial year 2021 is the same as last year's, but upped special dividend to 29 Singapore cents per share from seven cents the year before.

The company said in the results filing that it believes in adopting measured approach and will continue to monitor the health of the economy and residential property market, and calibrate the approach and timing to launch its new residential projects.

Bukit Sembawang shares closed at S$4.61, up 0.88 per cent on Tuesday, before the financial results were released.