HPL's full-year earnings up 37%
HOTEL Properties Limited's (HPL) net profit for the 12 months ended Dec 31, 2013, jumped nearly 37 per cent year-on-year to $177.64 million.
Revenue rose 27.5 per cent to $691.96 million, on the back of income recognition from the Tomlinson Heights condominium development on a percentage of completion basis as well as better performances by the group's hotels and resorts.
Earnings per share were 33.19 cents for the full year, up from 25.64 cents in the previous financial year.
The group's share of results of associates and jointly controlled entities increased from $52.56 million to $61.56 million, thanks in part to a gain on disposal of investment properties in London as well as profits from d'Leedon condominium at Farrer Road and The Interlace condominium at Alexandra Road.
The board has recommended a first and final dividend of four cents per share, and a special dividend of four cents per share.
"The hotel and resort division is expected to continue to contribute strongly to the group's operating results amidst an improving global economic outlook, although challenges remain from rising wage costs and increased competition," said HPL.
However, it went on to warn that the local residential property market is expected to remain subdued, owing to the total debt servicing ratio as well as concerns over potential interest rate hikes due to tapering in the US.
The counter closed unchanged at $2.99 yesterday.
