SINGAPORE (Aug 10): Property construction group TA Corporation has reported a loss of $10.9 million for the half year ended June, compared to its earnings of $0.2 million in 1H16.

For 1H17, the group’s revenue grew 22% to $107.8 million due to higher revenue contribution across all business segments, particularly the real estate development and real estate investment segments, which led to a 22.7% growth in the group’s gross profit to $20.4 million.

The higher revenue was however more than offset by a fair value loss of one of TA Corp’s investment properties, Tuas South Dormitory.

In its results filing on Thursday, the group’s CEO and executive director, Neo Tiam Boon, attributes this to weak market conditions of the group’s dormitory clientele, as well as rental rates which have been impacted by the weak business environment in addition to competition from neighbouring dormitories.

Due to the loss in fair value of investment properties, other operating expenses increased to $22 million in 1H17 from $6.3 million a year ago.

Over the three months ended June, the group’s 2Q losses widened to $12.7 million, compared to its loss of $2.1 million in the same period a year ago, with revenue for the quarter falling 10.8% to $46.8 million from $52.5 million a year ago.

The group’s net asset value (NAV) per share as at end-June was 39.5 cents compared to 43.5 cents as at end-2016.

“To strengthen our market position as one of Myanmar’s leading commercial vehicles and construction equipment distributors, the group’s 50%-owned Myanmar Synergy Company Limited opened a purpose-built two-storey showroom in Yangon this year, which will place us well to capture the robust demand from the transportation, construction and other sectors in the country,” says Neo.

“Looking ahead, the group will continue its efforts to raise occupancy and rental rates in our dormitories despite the difficult market conditions. We will also stay focused and cautious while seeking business opportunities locally and overseas to grow our revenue streams,” he adds.

Shares in TA Corp closed 2% lower at 25 cents on Thursday.

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