Property developer GSH tips back into the black

PROPERTY developer GSH Corporation reversed back into the black in the first quarter, boosted by higher revenue and a large gain in the fair value of financial derivatives.

For the three months ended Mar 31, the group recorded a net profit of S$2.8 million, compared with a loss of S$363,000 a year ago.

Revenue grew 64 per cent to S$23.5 million.

GSH registered an unrealised gain of S$12.4 million in the fair value of financial derivatives in the quarter, compared with S$434,000 the same period last year. This, the group explained, was because of a hedge it had entered into for a loan and deposit arrangement with foreign exchange exposure.

It also recorded an unrealised exchange loss of S$9.2 million.

The group said it expects the outlook for commercial properties to continue to be subdued in Singapore, and that the property market in Malaysia will also be soft.