Ho Bee Land's FY2022 earnings surge 141 per cent to S$330.5 million, proposes final dividend of 10 cents per share

PROPERTY developer H13 : H13 0% reported a 141 per cent surge in earnings for FY2021 to S$330.5 million from S$137.1 million. FY2021 revenue rose in tandem to S$347.7 million, up 61.2 per cent from S$215.7 million a year prior.

The mainboard-listed company proposed a final dividend of 10 Singapore cents per share in a filing on Monday evening.

Earnings per share rose to 49.77 Singapore cents in FY2021 from 20.62 Singapore cents in FY2020.

FY2021 earnings were driven by contributions from jointly controlled entities and associates reporting a 108 per cent growth from S$55.4 million to S$115.5 million. This was due to more units being handed over in the Tangshan and Zhuhai projects in China and the Seascape project in Sentosa Cove, Singapore.

Revenue growth was due mainly to sale of development properties of Turquoise in Sentosa Cove and Ho Bee Land's maiden master-planned community project Parklakes 2 in Queensland, Australia. Rent-back charges and positive rental revisions in certain london properties in 2021 resulted in increase in rental income

A fair value gain of S$53.1 million in FY2021, reversing from a loss of S$32.8 million a year prior on Ho Bee Land's portfolio of investment properties also contributed to the earnings growth. The property developer also booked a fair value gain of S$37.5 million from its Notes investment in Germany.

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"Our robust portfolio of investment properties in Singapore and London provided us the resilience to weather the headwinds in the real estate market," said Nicholas Chua, chief executive officer, Ho Bee Land.

The property developer entered into an agreement to acquire a Grade A office tower in London's insurance district for £718 million (S$1.31 billion). The acquisition is expected to be completed on Mar 7, and is part of the company's strategy to strengthen its recurrent income base.

This income base is what Ho Bee Land hopes will help in navigating the current uncertain global economic outlook due to the pandemic and impending interest rate hikes, coupled with the Russia-Ukraine war.

Shares of Ho Bee Land closed up 2.1 per cent to S$2.86.