Hwa Hong posts higher Q4 earnings of S$2.1m, proposes dividend

PROPERTY company Hwa Hong Corporation on Tuesday saw fourth-quarter earnings rise to S$2.1 million from S$84,000, on the back of higher rental income from its properties and investment dividends. 

Revenue for the quarter ended Dec 31, 2019 more than doubled to S$5.9 million versus the preceding year. This came as rental income from its property on 20 Garrett Street, and dividend income received from one of its investment securities, increased. 

Earnings per share for the quarter were 0.32 Singapore cent, up from 0.01 cent a year ago. 

Hwa Hong has proposed a dividend of one cent per share, to be paid on May 15, 2020. 

In its outlook, the group noted that the London residential market "stabilised following the election results which gave the Conservative Party a clear mandate to conclude its Brexit strategy".

Hence, it expects to be able to sell the remaining apartments in Hornton Street, although it also noted that the coronavirus outbreak is likely to have a "negative impact on business sentiment and the equity markets".

Meanwhile, enhancement work on Hwa Hong's London commercial properties, including Loman Street, to increase the net lettable area is progressing as planned.

Except for Loman Street, the group's investment properties in Singapore and the UK are fully let.