SINGAPORE (Feb 7): Property developer SingHaiyi Group saw its earnings grow 12.8% to $1.4 million for the 3Q ended December, from $1.2 million a year ago.

Group revenue more than trebled to $41.7 million in 3Q18, from $12.0 million a year ago.

This was mainly due to revenue recognised for the group’s completed executive condominium (EC) project, The Vales.

Property development income quadrupled to $39.2 million in 3Q18, from $8.9 million a year ago.

The higher revenue was partially offset by a 16.5% fall in rental income to $2.1 million due to the ongoing asset enhancement initiative at Tri-County Mall in the US as well as a 29.9% drop in management fee income to $0.4 million for project management services rendered in Singapore.

Gross profit fell 4.5% to $5.9 million in 3Q18, from $6.2 million a year ago, as gross profit margin plummeted by 37.1 percentage points due to a change in geographical revenue mix.

Other income fell 81.5% to $0.4 million, from $2.3 million a year ago, mainly due to an absence of net foreign exchange gain.

Finance costs decreased by $1.5 million to $0.2 million in 3Q18, mainly due to the absence of interest and amortised financing fee on notes which were fully redeemed in FY2017.

As at end December, cash and cash equivalents stood at $139.7 million.

Looking ahead, SingHaiyi says it remains cautiously optimistic of the outlook for the Singapore property market amid the increase in collective purchase activities, comparatively higher prices in the recent government land tenders, and the improved sentiment surrounding the residential and commercial sectors.

In the reasonably stable US real estate market, the group says it remains focused on delivering its pipeline of development projects.

SingHaiyi adds that it will continue to explore suitable additions to its existing land bank, while pursuing opportunities to deliver growth and strengthen its earnings base through yield-accretive acquisitions and quality property developments.

Shares of SingHaiyi closed flat at 11.5 cents on Wednesday.