SINGAPORE Land Group (SingLand) reported a 38 per cent fall in net profit to S$103.7 million for the six months ended Jun 30, 2024, from S$168.4 million in the year-ago period.
This was mainly due to a sharp decline in fair value gain on subsidiaries’ investment properties for the period, which amounted to S$5.3 million, down from S$93.5 million previously.
Excluding fair value and other gains or losses, net profit stood at S$97.6 million in H1, up 11 per cent from S$88 million previously.
Earnings per share for the period came in at 7.2 Singapore cents, down from 11.8 Singapore cents in H1 2023.
In H1, overall revenue rose 5 per cent to S$341.9 million, from S$325.9 million previously.
This was mainly due to higher revenue from hotel operations as the Pan Pacific Singapore hotel, which was closed for renovations in the last corresponding period, has since been fully operational, SingLand said in a bourse filing on Thursday (Aug 8).
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Revenue from property investments rose 10 per cent to S$133.8 million in H1, due mainly to higher average rental and occupancy rates, particularly at Singapore Land Tower.
However, these were partly offset by lower revenue from property trading, which posted a 60 per cent fall to S$10.5 million, as fewer units were sold for the group’s V on Shenton residential project.
No dividend has been declared for the period, in line with the group’s usual practice.
Commenting on trends and competitive conditions in the industry, SingLand noted that the “stronger-than-anticipated recovery” in the aviation and tourism-related sectors are expected to continue to support demand in Singapore’s hospitality sector.
The counter closed flat at S$1.75 per share on Thursday, prior to the earnings announcement.
