SLB back in the black with Q2 gain

Singapore

PROPERTY player SLB Development recorded S$3.6 million in earnings for the second quarter ended November, lifted by revenue from the Mactaggart Foodlink project, reversing the company's year-ago loss of S$726,000.

This translates to a Q2 earnings per share of 0.4 Singapore cent, compared to a 0.08 cent loss per share a year ago.

Separately, the company announced that it is diversifying into fund management. SLBF, a wholly-owned unit of SLB, signed an agreement on Dec 12 with 32 Holdings and an individual, Jeremy Choy Chun Min, to establish a fund management company, 32 Real Estate.

The JV will pursue investments in real estate funds and various segments of the real estate value chain, including land acquisition, planning and design, construction and investment into technologically innovative products or new business models for the real estate markets.

The move comes after SLB's maiden investment in a UK residential fund focused on the growing private rental sector, the Pinnacle Residential Fund, in October 2019.

Q2 revenue rose 55.5 per cent year-on-year to S$12.1 million, mainly due to the rise in contributions from Mactaggart Foodlink. The company also recorded S$1.2 million in other income, more than twice the year before, due to S$500,000 in interest income from loans to associates, as well as a S$600,000 gain on disposal of a subsidiary.

Other operating income increased by S$1.2 million or 180.3 per cent from S$0.7 million in 2Q2019 to S$1.9 million in 2Q2020 mainly due to an increase of S$0.5 million and a S$0.6 million gain on disposal of a subsidiary, Wellprime Pte Ltd, as announced by the company on Sept 25, 2019. For the half-year, SLB recorded a S$5.5 million net profit, reversing the S$4.8 million year-ago loss. However, revenue fell 37.8 per cent to S$19.8 million, due to the absence of revenue contribution from T-Space @ Tampines, as the project was completed in June 2018.

Separately, parent Lian Beng posted a 51.1 per cent rise in second quarter earnings to S$11.2 million. This was on the back of a doubling in revenue from S$81.2 million to S$164.7 million. Earnings per share rose to 2.24 Singapore cents from 1.48 cents previously. The company proposed an unchanged interim dividend of one Singapore cent per share. SLB and Lian Beng shares closed flat at S$0.118 and S$0.525, respectively on Monday.