SLB Development Ltd has reported earnings of $12.0 million in the 1HFY2022 ended Nov 30, 2021, more than two times the earnings of $5.5 million in the same period the year before.

Earnings per share (EPS) for the period stood 116.4% y-o-y higher at 1.32 cents on a fully diluted basis.

During the period, SLB saw a 157.2% increase in profit before tax to $15.5 million mainly due to the stronger take up of INSPACE units, higher development profits recognised from Affinity @ Serangoon, Rezi 24 and Riverfront REsidences with the sale of additional units.

1HFY2022 revenue stood 109.5% higher y-o-y at $39.9 million for the same reasons, and offset by a decrease in revenue recognised from Mactaggart Foodlink as the project had obtained its temporary occupation permit (TOP) in March 2021. 

Share of results of joint ventures and associates increased by $8.1 million or 521.9% to $9.6 million in 1HFY2022 from $1.5 million in 1HFY2021. The increase in share of results of joint ventures and associates was mainly due to higher development profits recognised from Affinity @ Serangoon, Riverfront Residences and Rezi 24.

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The group, in December 2021, acquired Peace Centre and Peace Mansion through an en bloc, private treaty arrangement, at a price of $650 million. This was through the group’s 33.33%-owned associated company, Ultra Infinity Pte. Ltd.’s strategic partnership with CEL Development Pte. Ltd. and Sing-Haiyi Crystal Pte. Ltd. 

Two joint venture companies, Sophia Residential Pte. Ltd. and Sophia Commercial Pte. Ltd. have since been incorporated via UIPL through this new joint venture partnership. A mixed development comprising 319 strata units, the property is a large District 9 commercial site allowed for mixed-use development, and strategically located in the established Mount Sophia residential enclave. 

SLB Development also continued to see additional sales of the remaining units of its joint venture (JV) developments – Affinity @ Serangoon, Rezi 24 and Riverfront Residences – of which all three projects are almost fully sold.

As at Nov 30, 2021, cash and cash equivalents stood at $40.8 million.

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No dividend has been declared so as "to retain funds for working capital requirements of the group and to allow the group to capitalise on potential investments opportunities", says SLB in its financial statement released on Jan 14.

“We have continued to make good strides ahead through strategic partnerships with experienced property developers,” says Matthew Ong, executive director and CEO of SLB, “Additionally, we have collectively seen a continued good take-up of units for the three joint venture residential developments in Singapore.”

Shares in SLB Development closed 0.7 cent higher or 5.93% up at 12.5 cents on Jan 14.

Photo: Samuel Isaac Chua/The Edge Singapore