Ho Bee Q3 profit jumps 51%

Singapore

BOLSTERED by strong recurring income, Ho Bee Land marked a 51 per cent jump in net profit for the third quarter ended Sept 30 to S$20.3 million.

This translated to an earnings per share of 3 cents for the third quarter, up from 2 cents in the same period last year.

Group revenue rose 21 per cent to S$32.5 million, due mainly to an increase in rental income from the office building, The Metropolis in Singapore, and rental recognition for the newly acquired office building, 39 Victoria Street in London.

Ho Bee group chairman and CEO Chua Thian Poh attributed the improved performance to the group's strategic decision to grow its rental income stream over the last five years. "The strong rental income will continue to underpin the group's earnings for the rest of the year," he added.

For the nine months ended Sept 30, the group racked up a 63 per cent surge in net profit to S$48.5 million, thanks to revenue (rental income) leaping by 33 per cent to S$94.2 million and other operating income jumping by five times to S$8.6 million.

Total shareholders' fund as at Sept 30 amounted to S$2.64 billion, representing a net asset value of S$3.96 per share.

Ho Bee's net gearing, based on the ratio of total debt less cash to total equity, increased from 0.35 times as of end-December 2014 to 0.5 times as of end-September due to higher borrowings to fund the purchase of the commercial properties in London.

Shares of Ho Bee slipped 0.5 per cent to S$1.99 on Thursday.