SINGAPORE (Aug 6): Ho Bee Land reported 2Q19 earnings of $14.4 million, or 2.16 cents per share, down 79.9% from $71.5 million in the previous year.

This was primarily due to the group’s share of losses from associates and jointly controlled entities which amounted to $6.7 million, compared to the share of profits of $28.3 million recorded in 2Q18. The share of losses for the quarter was a result of the accrual of land appreciation tax amounting to $20.5 million.

Revenue for the quarter increased 21% to $52.6 million from $43.4 million in the preceding year.

Rental income for the quarter grew 30% to $51.9 million mainly due to higher rental revenue from Ropemaker Place which was acquired in June last year as well as positive rental reversions at The Metropolis in Singapore and other London properties.

Conversely, sales revenue fell 81.3% to $644,000 in conjunction with the group’s sale of a 30-year leasehold interest relating to its 999-year investment property on Bukit Timah Road in 2Q18.

Profit from operations dropped 31.6% to $39.3 million.

As at end June, total shareholders’ fund amounted to $3.2 billion, representing a net asset value of $4.89 per share.

In its outlook statement, Ho Bee notes that ongoing geopolitical tensions, trade conflicts and Brexit uncertainty have led to a bleak global economic growth outlook, which has already impacted Singapore negatively.

Chua Thian Poh, chairman of Ho Bee Land, says, “Our portfolio of investment properties will help us weather the challenging times ahead and underpin the group’s profitability.”

Shares in Ho Bee Land closed 1 cent lower at $2.32 on Tuesday.