REDUCED commodity trading hit the numbers at Tuan Sing Group in the first quarter but its real estate arm saved the day.
Net profit rose 33 per cent from $5.8 million to $7.7 million in the three months to March 31, compared with the same period last year. Revenue fell 6 per cent to $61.3 million mainly due to lower sales at its industrial services unit, stemming from lower commodity-trading activities.
The property division offset much of that, thanks to units sold at Seletar Park Residence and Sennett Residence, as well as new bookings for new Cluny Park Residence.
The redevelopment of the Robinson Tower site is ongoing. Tuan Sing said that the proposed redevelopment comprises a 28-storey commercial building with a sky terrace, a retail podium and a six-level fully automatic mechanised basement carpark. When completed in 2017, it will contribute steady recurring income.
Rents from Robinson Point also boosted the property division, which recorded a 49 per cent growth in revenue at $30.4 million.
The hotels investment division lifted revenue up 2 per cent, thanks to returns from its Grand Hyatt Melbourne and Hyatt Regency Perth holdings.
Earnings per share rose to 0.7 cents from 0.5 cents in the same period last year, while net asset value increased to 64.8 cents as of March 31 this year, compared with 63.9 cents at the end of last year. No dividend was declared. Tuan Sing shares were flat at 35 cents yesterday.
The group said that while property cooling measures in Singapore and China have affected the market, it will still continue its property development business and continue to invest in the region as well as locally.
Source: Straits Times, 30 Apr 2014