Roxy-Pacific Holdings has reported a 70% y-o-y drop in earnings to $2.8 million for 1HFY20. Revenue in the same period was down 16% y-o-y to $118.1 million, due to lower contributions from both its property development and hotel businesses.

The company, which owns hotels such as Grand Mercure Roxy Singapore (picture) suffered a revenue drop of 39% y-o-y to $15.1 million. 

As at July 26 2020, the company’s total attributable pre-sale revenue was $454.5 million, versus $620.6 million in the year-earlier period, and will be progressively recognised from 3Q2020 to FY2023. 

Roxy-Pacific joins a growing number of property companies that are actively recycling their capital via a series of investments and divestments.

In February this year, the company bought a 49% stake in a five-storey retail building in Tokyo, for 5.2 billion yen, called VIVEL Shibuya.

The following month, it sold its 53.07% stake in another retail building in Tokyo for 8.6 billion yen. The property was bought just back in June 2019 for six billion yen. 

Last month, the company announced the investment in a 40% interest in a commercial tower in Melbourne.

“We continue to demonstrate our ability to identify and unlock the potential in our investments, delivering strong gains within a short period of time,” said Teo Hong Lim, the company’s executive chairman and CEO.

“At the same time, we have recycled our capital to pursue potentially higher-yielding reinvestment opportunities as we seek to achieve rolling returns on our investment,” he added.

As at June 30 2020, Roxy-Pacific’s net asset value was 76.96 cents per share, down from 77.84 cents per share as at Dec 31 2019.

Roxy-Pacific shares closed Aug 11 at 32 cents, unchanged for the day but down 20% year to date.