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TEE Land Q2 profit jumps 46% on revenue surge
TEE Land's net profit for the second quarter ended November 2014 rose 46 per cent to S$2.42 million, on the back of revenue jumping from S$2.44 million to S$15.12 million.
For the half year ended November, net profit doubled from S$2.23 million to S$5.11 million. Revenue rose from S$16.01 million to S$21.56 million.
The hike in net profit was due to higher progressive revenue being recognised for its Aura 83 development as well as increased contributions from its associates.
Jonathan Phua, CEO and executive director of TEE Land, said: "We are satisfied that our H1 FY2015 results demonstrated that we are growing year on year. While we remain cautious on Singapore and Malaysia, given the continued enforcement of cooling measures on the property markets, we continue to be confident on the long-term prospects of our other markets, such as Thailand, New Zealand and Australia. As such, we have been steadily acquiring new land and assets to further strengthen our portfolio in these markets."
In addition to developing properties for sale, the group has also been building up its property investment portfolio to generate recurring income. The latest addition to its portfolio was in December 2014 when its wholly-owned subsidiary TEE Hospitality Pte Ltd entered into a collaboration with Peter & Jan Clark (Levey Street) Pty Ltd and Kenmooreland Pte Ltd to establish a 55:10:35 joint venture company to acquire a four-star boutique hotel in Sydney, Australia, for A$23.2 million.