SINGAPORE (Nov 12): Shares of many local property companies are trading at 52-week lows, weighed down by factors such as higher interest rates, the unexpected July property cooling measures and a general downtrend in the stock market.

Roxy-Pacific Holdings, which operates hotels on top of its property development business, has been suffering similarly. On Nov 2, executive chairman Teo Hong Lim bought 200,000 shares from the open market at an average price of 38 cents each, according to a filing with the Singapore Exchange on Nov 5.

Also on Nov 5, the company announced it had bought back another 144,100 shares. On Nov 1, the company had bought 200,000 shares; the following day, it bought 100,000 shares. The purchases on Nov 1, 2 and 5 were all at 38 cents each. Taking the Nov 5 buybacks into account, Roxy-Pacific had bought back nearly 7.83 million shares under the current mandate.

With the purchases on Nov 2, Teo owns a direct stake of 130.3 million shares, and deemed shares of 678.7 million. The total of nearly 809 million direct and deemed shares gives him a stake of 61.98%. According to the company’s most recent annual report, as at March 1, 2018, Teo’s direct and deemed stake was 61.15%.

Year to date, Roxy-Pacific shares have dropped 21.87% to close at 38 cents on Nov 8. At this level, the shares are trading at just around its book value of 37.96 cents as at Sept 30. At 38 cents, Roxy-Pacific is valued at 19.89 times historical earnings, and has a market value of $495.9 million.

For the three months to Sept 30 2018, Roxy-Pacific reported earnings of $4.4 million, up 175% y-o-y; revenue was down 69% to $18.8 million. The year-earlier quarter’s revenue has been restated to reflect changes to accounting standards. For the nine months to Sept 30, earnings was down 20% y-o-y to $17.9 million; revenue was $102 million, down 50% relative to the year-earlier period. Similarly, revenue for the nine months to Sept 30, 2017 has been restated.

Roxy-Pacific’s property development business contributed 80% of the revenue for the first nine months of the year, with its hotel operations and property investments accounting for the remainder.

Based on units sold at the ongoing projects, Roxy-Pacific had chalked up attributable pre-sale revenue of $593 million as at Oct 22. Earnings from these projects will be recognised gradually from 4QFY2018 to FY2021. Two of the key projects with revenue to be recognised are Harbour View Garden and 120 Grange, with $72.2 million and $70.8 million respectively.

The company has two projects in Malaysia — The Colony by Infinitum and The Luxe by Infinitum, with $35.5 million and $17.2 million, respectively, in pre-sales revenue to be booked.

Roxy-Pacific is active in Australia as well. The Hensley, Potts Point, a mixed development in Sydney, will bring in $68.4 million; the Octavia, Killara, $46.8 million; and the largest contribution will be from the West End Glebe development. Tower 1 of West End Glebe has generated pre-sales of $142.1 million and Tower 2, $85 million.

In recent years, Roxy-Pacific has accumulated seven plots in Singapore for projects yet to be launched. They are RV Altitude; Arena Residences; Dunearn 386; Fyve Derbyshire; 15, 17 and 19 Lorong Kismis; 22 Farrer Road, and 27 Moulmein Rise. Four of these plots are joint ventures and three are wholly-owned. Roxy-Pacific’s attributable gross land area (calculated based on percentage held) of these seven projects is 343,077 sq ft. Its attributable land cost totalled $419.5 million.

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