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

REAL estate developer and investor Ho Bee Land saw a 42 per cent increase in net profit to S$149.9 million on the back of higher rental income, higher sales, and realised divestment gains on its Munich office asset, said the mainboard-listed group in its bourse filing on Thursday (Aug 11). 

Revenue grew 13.3 per cent year on year to S$178.3 million from S$157.3 million previously.

Earnings per share stood at S$0. 2257 up from S$0.1589 in the first 6 months of 2022. Total shareholders’ fund as of end-June was S$3.96 billion, representing a net asset value of S$5.97 per share.

Rental income increased by 12.9 per cent year on year to S$128.6 million from S$113.9 million previously – contributed mainly by the acquisition of The Scalpel in London in March 2022, Ho Bee Land noted.

Sales revenue rose 14.5 per cent to S$49.6 million from S$43.4 million, predominantly attributable to higher sales from Turquoise in Sentosa Cove, the group added.

Other operating income of S$32.8 million included a realised gain on the Munich Notes investment of S$30.8 million.

The improvement in the group’s share of results of associates to S$16.7 million from S$10.8 million previously was mainly attributable to the Nanjing project in China, which started handing over units to buyers in H1 2022.

However, the group’s share of profits was down 84 per cent to S$7.8 million from S$50 million previously, because of the handover of the remaining 60 per cent of the units in the second phase of the Tangshan project in H1 2021. The profit recognised from this project was S$46.6 million in H1 2021.

A tax credit of S$9.6 million was recorded in H1 2022 due to tax write-backs of S$38.3 million arising from the revised tax assessments from Inland Revenue Authority of Singapore relating to prior years.

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Nicholas Chua, chief executive officer of Ho Bee Land said the enlarged portfolio of investment properties after the acquisition of The Scalpel continues to underpin the group’s profit and sales from the Sentosa Cove projects have also been encouraging.

“The rising interest rates, inflation and volatility in foreign exchange rates could have an impact on the company’s financial performance. Nevertheless, barring any further external shocks, we expect to remain profitable for the year,” Chua added.

Shares of Ho Bee Land finished flat at S$2.81 on Thursday, before the results were released.