CATALIST-LISTED property developer SLB Development on Monday posted a net profit of S$1.86 million in the first quarter, reversing from a net loss of S$4.1 million in the same period a year earlier.

The bottom line was lifted by a lower share of losses of joint ventures and associates, which declined to S$0.3 million in the three months to Aug 31, from S$4.1 million in the same period a year earlier, mainly due to marketing and showflat costs incurred for Affinity @ Serangoon and Riverfront Residences launched in the first quarter last year that have yet to contribute revenue, as well as the effect of expensing borrowing costs for both projects as the units were ready for their intended sale.

Revenue in the three months ended Aug 31 fell 68.1 per cent to S$7.7 million, due to absence of revenue contribution from T-Space @ Tampines as the project was substantially completed in June 2018.  

First-quarter earnings per share was 0.20 Singapore cent, compared to a loss per share of 0.45 Singapore cent in the first quarter last year.

Net asset value per share was 16.46 Singapore cents as at Aug 31.

SLB is a subsidiary of main contractor Lian Beng.

Following approval obtained from shareholders at an extraordinary general meeting held on Sept 26 to diversify its business into fund management, SLB made its first £2 million (S$3.5 million) investment into a UK residential fund, Pinnacle Residential Fund, which will focus on the private rented sector across the UK.

SLB said: "This initial investment also gives the group an option to subscribe for a 20 per cent equity stake in (the fund manager), which will be building a series of funds in 'Living Sectors' - properties that provide people with homes of different types and tenures for various needs and stages of life - supported by key macroeconomic, demographic and political themes and data analytics. The option expires on Dec 31, 2019."

Meanwhile, SLB continues to push sales for its ongoing projects and has been recording incremental sales, it said.

On Sept 25, it announced the disposal of its wholly-owned subsidiary Wellprime that owns the development site at 50 Lorong 21 Geylang for S$13.5 million. The disposal is expected to contribute positively to the group's performance in the second quarter, it said.

SLB shares last changed hands at S$0.111 on Oct 10.