Tuan Sing slips into loss in H2 2021 due to fair value adjustment
MAINBOARD-LISTED Tuan Sing Holdings T24 recorded a net loss of S$17.1 million for the 6 months ended Dec 31, 2021 on Friday (Feb 25), from a net profit of S$52.4 million it recorded a year earlier.
This comes as the property group recorded a fair value loss of S$3.3 million, down from a fair value gain of S$42 million a year ago due to the absence of fair value gain from Robinson Point office building on Robinson Road, which the group sold in June 2021. The revaluation of its investment properties also led to net fair value loss.
Including fair value adjustments, loss per share stood at S$0.014, down from earnings per share of S$0.044 recorded a year ago. Excluding fair value adjustments, loss per share stood at S$0.01, down from earnings per share of S$0.011.
The group's revenue fell 3 per cent to S$101.4 million from S$105 million in the same period a year ago.
The board has proposed a first and final dividend of S$0.007 per share to be paid for FY2021, up from S$0.006 per share paid out for FY2020. The group's scrip dividend scheme will be applicable to the proposed dividend.
For the full year ended Dec 31, 2021, the company recorded a 42 per cent increase in net profit to S$83.7 million, while revenue climbed 25 per cent to S$245.3 million. Earnings per share for the full year stood at S$0.07, up from S$0.05 a year earlier.
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Tuan Sing noted that its rental income from its investment properties were minimally impacted by the pandemic, with 18 Robinson, an office and retail development at the junction of Robinson Road and Market Street, and Link@896, a a mixed-use office and retail building along Dunearn Road, continuing to see improving occupancies.
The group also noted that its Mont Botanik Residence, a freehold condominium in Hillview, achieved 98 per cent sales and Peak Residence, a freehold condominium along Thomson Road was soft launched.
"Despite the further cooling measures announced by the government in 2021, the group expects buying sentiments in the residential market to continue to be fuelled by ample liquidity amidst dwindling stock, although higher construction costs and the tight manpower situation may continue to impact margin and construction schedule," the group said.
In Australia, the group's Hyatt Regency Perth currently operates as a quarantine hotel while the Grand Hyatt Melbourne also saw intermittent lockdowns. However, the group expects demand to improve as Australia's borders reopen this year.
Tuan Sing shares rose 2.3 per cent or S$0.01 to close at S$0.45 on Friday, before the results were released.
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