Tuan Sing’s gross revenue declined by 29 percent year-on-year to S$74.8 million in the first quarter of 2017, while net profit slumped 44 percent to S$5.4 million as it has sold most of the units at its residential projects completed in 2016, revealed an SGX filing on Thursday, 27 April.
Including rental income from investment properties, the real estate segment accounted for 30 percent of the firm’s total revenue in Q1 2017 at S$22.7 million versus S$48.9 million a year ago. At the same time, profit after tax from this source fell to S$2 million compared to S$7.1 million previously.
As a result, earnings per share dipped from 0.8 cent in the prior year to 0.5 cent in the first quarter of 2017. Nevertheless, the company’s net asset value per share inched up from 77.7 cents to 78.1 cents over the period.
Meanwhile, Tuan Sing plans to launch Kandis Residence in the third quarter of 2017, while another development is targeted to be unveiled in Q2 2018.
Located near the Hillview MRT Station, the latter consists of around 100 condos sited on a freehold site at 1 Jalan Remaja that was purchased by the company earlier this month for S$47.8 million.
In April 2017, Tuan Sing has also agreed to buy Sime Darby Centre at Dunearn Road opposite King Albert Park MRT Station for S$365 million.
“In due course, the group will reposition the property into a hub of activities that can serve the needs of the vast residential community in the vicinity. The completion of the transaction is expected to be in June 2017,” it said in a statement.
Separately, Tuan Sing intends to issue a second tranche of notes of around S$140 million in May 2017 under its Medium Term Note Programme. This is to finance the acquisition of the Sime Darby Centre and to meet an increase in working capital requirement for residential projects.
This article was edited by Denise Djong.