Metro Holdings, the property developer and departmental store operator reported a net profit of $15.5 million for the three months ended December 31, 2009 (3QFY2010). This was an increase from $603,000 in the previous corresponding quarter (3QFY2009).

The rise in net profit is mainly attributed to an unrealised gain in the fair value of the group’s portfolio of short-term investments of $7.7 million, compared to an unrealised decrease in fair value of $6 million in the previous corresponding period.

Cumulatively, the group’s net profit for the nine months ended December 31, 2009 (9MFY2010) rose to $38 million, an improvement from $1.4 million in the previous corresponding period.

Revenue also rose by 10.4%, from $37.5 million in 3QFY2009 to $41.4 million in 3QFY2010. High rental income from GIE Tower in Guangzhou and the newly opened EC Mall in Beijing contributed to Metro’s topline revenue improvement. Sales of the Retail Division rose with contribution from the new Metro City Square department store in Singapore. Sales and profitability of the Retail Division’s associated company in Indonesia remained relatively stable in 3QFY2010.

Quarter-on-quarter, Metro’s core Property Division achieved revenue growth of 4.9% to $14.2 million in 3QFY2010, despite a slow recovering economy. One of the group’s properties in China, Metro City Shanghai, was affected due to ongoing asset enhancement activities. However, higher rental income from the group’s mature properties — Metro City Beijing, GIE Tower Guangzhou and Metro Tower Shanghai, continued to enjoy high occupancy rates and correspondingly contributed to the group’s revenue growth.

Metro’s Retail Division recorded growth of about 13.4% with a revenue of $27.2 million for 3QFY2010, and a 6% increase to $70.5 million for 9MFY2010. This rise was due to a good sales performance from the new Metro City Square department store in Singapore, which opened in late September 2009.

The group says it maintains a strong balance sheet with cash and cash equivalents of $132.9 million as at December 31, 2009. Shareholders’ equity stood at $937.4 million and net gearing remained low at 0.06 times.