SLB reports S$1.9m profit for 1Q 2020
The Group’s residential projects, Affinity @ Serangoon and Riverfront Residences are seeing steady sales, with T-Space @ Tampines receiving strong reception.
SLB Development Ltd. (“SLB” and together with its subsidiaries, the “Group”) posted net profit attributable to the owners of the Company of S$1.9 million riding on the back of S$7.7 million in revenue for the first financial quarter ended 31 August (1Q 2020).
The revenue for 1Q 2020 is a 68.1 percent decrease from the same period last year (1Q 2019), mainly because of an absence of revenue contirbution from T-Space @ Tampines.
Other operating income grew by S$1.4 million to S$1.6 million in 1Q 2020 mainly because of interest income from loans to associates, according to SLB’s news release.
Meanwhile, share of losses of joint ventures and associates was valued at S$0.3 million in 1Q 2020 from S$4.1 million in 1Q 2019 because of marketing and costs for show flats incurred for Riverfront Residences and Affinity @ Serangoon that have yet to make revenue contribution. Another reason is the effect of expensing borrowing costs for the projects as the units were ready for the intended sale.
The Group also reported a net profit attributable to shareholders amounting to S$1.9 million in 1Q 2020, compared to a S$4.1 million net loss in 1Q 2019. It also has cash and cash equivalents amounting to S$51.8 million and a low net gearing of 0.2 times.
Fully diluted earnings per share was 0.20 Singapore cent for 1Q 2020 compared to a loss per share of 0.45 Singapore cent last year.
Net asset value per share grew to 16.46 Singapore cents as at 31 August 2019 in contras with 16.29 Singapore cents as at 31 May 2019.
Following shareholders’ approval during an extraordinary general meeting held on 26 September 2019 to diversify the business into fund management, the Group invested for the first time into a UK residential fund, Pinnacle Residential Fund (the “Fund”).
Through its subsidiary, SLB Starcap Pte Ltd, the Group has invested £2 million (S$3.4 million) into the Fund that will focus on UK’s Private Rented Sector (“PRS”). By 2025, the UK PRS is expected to reach £75 billion. (S$129.5 billion).
Meanwhile, the Group’s residential projects, Affinity @ Serangoon and Riverfront Residences are seeing steady sales, with T-Space @ Tampines receiving strong reception.
It has also sold its 50 Lorong 21 Geylang site for S$13.5 million, which is expected to have a positive contribution to the Group’s performance in 2Q 2020.
“While we continue to seek growth for our core property development business – which has been executing ongoing projects that have been selling well – we recognise the need to diversify our income streams,” said Matthew Ong, SLB executive director and CEO.
“The fund management business is expected to facilitate our business development goals by enhancing our network of contacts and providing access to new groups of prospective clients and potential partners.”
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
