Singapore Land swings back to black with S$92.2m H1 net profit

REAL estate developer Singapore Land Group swung back into the black with a net profit of S$92.2 million in the first half of 2021, reversing from a net loss of S$34.3 million in the same period last year.

This came despite a 13 per cent drop in revenue from S$335.4 million last year to S$292.3 million, thanks to a fall in residential property sales, hotel operations and technology operations.

Revenue from property trading fell 66 per cent to S$12.2 million, as less units from the residential project V on Shenton were sold this year. Revenue from hotel operations dropped 2 per cent to S$15.9 million, which the group said was due to the "continuing impact" of Covid-19 pandemic.

Technology operations decreased in revenue by 8 per cent to S$103.8 million, due to backlog in order delivery as a result of global shortage in computer chips.

In the six months ended June 30, the group, formerly known as United Industrial Corp, booked a S$2.6 million fair value gain on investment properties (net of non-controlling interests), reversing from a fair value loss of S$117.8 million in the same period last year.

The group's share of operating profits from associates fell 29 per cent to S$10.7 million, on lower contribution from its Shanghai project Park Eleven. This stemmed from fewer handover of units and poorer performance by the hotels due to the current Covid-19 situation.

However, the fall was largely offset by the fair value gain on investment properties of S$300,000 recorded, it said, versus the S$4.4 million loss in the previous year.

On the other hand, share of operating profits of joint ventures increased by 140 per cent, thanks to the recognition of progress of development for The Tre Ver residential project. In addition, the joint ventures also recorded a fair value gain on investment properties of S$0.2 million, as opposed to a S$11 million loss in the corresponding period last year.

Earnings per share (EPS) excluding fair value gains and losses was 6.3 Singapore cents, down from 5.8 cents last year. After accounting for fair value gains and losses, EPS was 6.4 Singapore cents, reversing from a loss per share of 2.4 cents in the year before.

Net asset value per share was S$5.18 as at June 30, up from S$5.12 as at Dec 31 last year.

Singapore Land shares closed flat at S$2.70 on Friday.