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KOP reverses into the black in Q3 on debt redemption

PROPERTY and entertainment group KOP Ltd on Monday said it reversed into the black in the third quarter following a gain from a debt redemption.

It posted a net profit of S$39.2 million for the third quarter ended Dec 31, 2014, compared to a net loss of S$354,000 a year ago.

Its "other income" rose to S$43.6 million for the third quarter, compared to S$1.25 million for the same period a year ago.

KOP said this was mainly due to the gain "on disposal of 2013 junior notes of S$43 million". In November, the company announced that it would be repaid for debt that was issued and redeemed by a related company, Royce Properties. Part of this debt held by KOP translated into 39.9 per cent of the "underlying economic interest" in the Ritz-Carlton Residences. KOP said on Monday that with the redemption, it no longer holds any stake in the Ritz-Carlton Residences.

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Revenue gained 21 per cent to S$5.6 million. Gross profit, however, was up just 3 per cent at S$2.56 million.