TEE Land Q2 loss widens to S$6.97m on rise in other operating expenses

DESPITE a rise in gross profit, mainboard-listed developer TEE Land saw its net loss attributable to owners widen to S$6.97 million for the second quarter ended Nov 30, from a restated loss of S$2.04 million for the year-ago period, according to results released on Thursday.

Contributing to the loss was a surge in other operating expenses to S$5.4 million from S$0.4 million in the year-ago period. This was due mainly to the additional buyer's stamp duty payable for a development project, as the project did not meet the required timeline for completion, as well as the fair-value loss of TEE Building.

Revenue shrank 24.8 per cent to S$16.3 million in the second quarter from S$21.7 million in the year-ago period, due mainly to lower revenue from development projects 24One Residences and 183 Longhaus, and lower sales of unsold units in Third Avenue, offset to some extent by the progressive recognition of revenue from Rezi 35 and 35 Gilstead.

Loss per share for the second quarter was 1.56 Singapore cents, compared with 0.46 cent in the year-ago period.

With the latest quarter's results, TEE Land's net loss attributable to owners for the first half of the year was S$8.66 million, widening from S$5.11 million in the year-ago period. Revenue for the half year was down 33.8 per cent at S$37 million, compared with a restated S$55.9 million in the year-ago period.

Amid continued global uncertainty, "the operating environment in Singapore for the property market is expected to remain challenging and could affect the performance of the group", said TEE Land.

Any delays in achieving 100 per cent sales, or in completion of the group's existing properties which are subject to regulatory timelines, could also hit the group's performance, it added. The performance of its overseas markets is also expected to be affected by local economic developments and foreign exchange fluctuations.

"Moving forward, the group will take a cautious approach when seeking opportunities to acquire new land sites and in making any investments," said TEE Land. It added that it will focus on improving operations and sales, realising value in investments, and reducing its gearing.

TEE Land shares closed up 0.5 Singapore cent or 3.05 per cent to 16.9 Singapore cents on Thursday before the results release.