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Metro's 4Q earnings surge to $51 mil on fair value gains & share of JVs

Michelle Zhu
Michelle Zhu • 2 min read
Metro's 4Q earnings surge to $51 mil on fair value gains & share of JVs
SINGAPORE (May 28): Metro Holdings has announced 4Q19 earnings of $51 million compared to $1 million a year ago, due to higher revenue and fair value gains, as well as a surge in share of results in joint ventures (JVs).
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SINGAPORE (May 28): Metro Holdings has announced 4Q19 earnings of $51 million compared to $1 million a year ago, due to higher revenue and fair value gains, as well as a surge in share of results in joint ventures (JVs).

The group’s earnings for the full year nonetheless came in 40.2% lower at $95.3 million compared to $159.2 million in FY18 on the back of comparatively lower share of results of associates.

Revenue for 4Q grew 16.6% to $40 million from $34.3 million in 4Q18, driven mainly by a one-off sale of property rights of residential development properties in Bekasi, Jakarta.

Revenue contribution from the retail division fell a marginal 1.4% y-o-y to $32.1 million from $32.6 million after registering lower sales.

An operating loss of $2.8 million was registered for this segment due to the impairment of fixed assets and obsolescence, exacerbated by pressure on margins amid a highly competitive trading environment, according to the group.

Over the quarter, a fair value gain of investments of $5.9 million was recorded compared to a loss of $1.4 million in 4Q18.

A $14.7 million fair value gain on investment property was also booked in relation to GIE Tower, Guangzhou.

Share of results of JVs surged to $32.1 million from $3.2 million a year ago due to higher fair value gains on investment properties from Metro Tower and Metro City, Shanghai, as well as 5 Chancery Lane in London.

The group has proposed a final special dividend of 2.5 cents on top of a 2-cent final dividend.

Looking ahead, Metro says it intends to deepen investments in quality properties based in key markets.

“The Metro Group is well-positioned in its key markets and our experienced team will continue to build the Group’s presence and investment in the region through new property investments, asset enhancements and strategic alliances with established partners, with a view to broadening revenue streams and facilitating sustained profitability,” says Metro’s chairman, Winston Choo.

Shares in Metro closed 1 cent lower at 99 cents on Monday.

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