SingLand H2 net profit falls 60% to S$95.3m; Wee Cho Yaw retires from board

SINGAPORE Land Group (SingLand) : U06 0% reported a 60 per cent fall in net profit to S$95.3 million in the six months ended Dec 31, 2022, down from S$239 million in the year-ago period.

This was mainly due to a fair-value loss on subsidiaries’ investment properties of S$6.6 million in the second half (H2), compared to a S$101.4 million fair-value gain recorded in H2 FY2021, SingLand said in a regulatory filing on Friday (Feb 24).

In a separate filing on the same day, the group also announced that veteran banker Wee Cho Yaw has retired as chairman, and will be replaced in the role by his son, Ee Lim.

The younger Wee is chief executive of Haw Par : H02 0%, maker of the Tiger Balm line of products.

Earnings per share for H2 2022 – including fair-value losses on investment properties – fell to 6.7 Singapore cents per share, down from 16.7 Singapore cents per share in H2 FY2021.

Revenue for the second half of FY2022 rose 26 per cent to S$346.9 million, up from S$275.5 million previously. This was mainly due to revenue from the group’s hotel operations more than doubling to S$66.5 million, which were boosted by the recovery of Singapore’s hospitality sector during the second half, SingLand said.

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The board has proposed a final dividend of 3.5 Singapore cents per share, unchanged from the previous year.

For the full year ended Dec 31, 2022, net profit rose 37 per cent to S$455.1 million, while revenue gained 21 per cent to S$611 million.

“Amidst the challenging business environment, companies remain cautious in their expansion plans, resulting in slowing demand for office space,” said SingLand.

“The impact has been cushioned by tight office supply over the mid-term coupled with demand from displaced tenants as older office developments undergo refurbishment.”

Shares of SingLand closed 0.9 per cent or S$0.02 higher to S$2.34 on Friday, prior to the announcements.