Ho Bee Land flags ‘significant decrease’ in six-month, full-year net profit

REAL estate developer Ho Bee Land is expecting to record a “significant decrease” in its net profit for the six months and full year ending Dec 31 as compared to last year.

According to a profit guidance on Wednesday (Dec 21), the group’s year-on-year revenue and operating profit have gone up on higher sales of development properties in Singapore and Australia, as well as higher rental income from investment properties in Singapore and London.

But these have been offset by several factors. Firstly, the mainboard-listed company recorded fair-value losses based on indicative valuations of its portfolio of investment properties in London. This fair-value loss is non-cash in nature and arose mainly due to higher cap rates, said the group.

The group also incurred higher foreign exchange losses this year largely due to the weaker Australian dollar and Euro against the Singapore dollar.

Finally, rising interest rates have caused the company’s year-on-year interest expense to go up significantly.

Nevertheless, the group expects to remain profitable for its six-month and full-year periods. Further details of its performance will be disclosed when it releases its unaudited financial results.

SEE ALSO

Ho Bee Land’s H1 profit up 42% to S$149.9m

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Shares of Ho Bee Land closed flat at S$2.37 on Wednesday, before the profit guidance was released.