Singapore Land H1 profit falls 53.2%; share of associate, joint venture results weaken
SINGAPORE Land Group reported a 53.2 per cent decline in net profit to S$168.4 million for the first half ended June 2023, from S$359.8 million in the corresponding period a year earlier.
This is despite a 23.4 per cent increase in revenue to S$325.9 million, from S$264 million a year ago.
In a bourse filing on Tuesday (Aug 8), Singapore Land said that the rise in revenue was driven largely by an increase in revenue from hotel operations, which rose 66 per cent to S$119.5 million. It noted that in the first quarter of 2022, the hospitality sector was still affected by Covid-19 restrictions.
However, the group saw its share of results in both its associates fall by S$25 million due to lower contributions from the Park Eleven Shanghai project and Avenue South Residence, a Singapore residential project.
The group’s share of joint venture results also fell by S$28.4 million due to a higher share of fair value loss on a joint venture’s investment property of S$16.1 million, as well as lower contribution from The Tre Ver residential project.
Singapore Land’s board did not declare dividends for the half-year under review, as it is not the group’s usual practice to do so.
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As for its outlook, the group noted that the office sector has continued to show modest signs of growth.
“Although clouded by the continued global macroeconomic uncertainties, rental growth and occupancy levels remain supported by the limited new office supply pipeline, with only 1.1 million square feet of new office space scheduled for completion in 2023,” the group said.
It added that well-located spaces in prime malls have seen strong demand with new retail operators, and that demand in the suburban market remains steady, even with new retail supply.
On the hospitality market, the group expects it to continue picking up pace on the back of increased flight capacity and a strong pipeline of large events and conferences in 2023.
“For Tianjin, the full recovery of its hospitality market is dependent on the return of the leisure market, while corporate demand is projected to remain stable and forms the base business,” it added.
Shares of Singapore Land shed 0.5 per cent or S$0.01 to close at S$2.06 on Tuesday, before the results were announced.
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