Published November 3, 2009

Allgreen more than doubles Q3 net to $74m

Higher contribution from property development led to strong showing

By KALPANA RASHIWALA

	Email this article
	Print article
	Feedback

MALAYSIAN tycoon Robert Kuok's Singapore-listed property and hotel group Allgreen Properties has posted a surge in third-quarter earnings on the back of contributions from its One Devonshire and Viva condominium projects in Singapore.

Selling well: Sales at One Devonshire helped in Allgreen's profit surge

Allgreen reported net earnings of $74 million for the third quarter ended Sept 30, 2009, more than double the $31.2 million net profit in Q3 last year. Revenue jumped from about $113.4 million to $293.1 million.

Allgreen credited its strong Q3 earnings chiefly to higher contribution from its property development business.

For the first nine months of this year, Allgreen achieved a 92.4 per cent year-on-year increase in net profit to about $126.7 million on the back of a 66.5 per cent increase in revenue to $458.5 million.

The revenue improvement was again due largely to increases in revenue from development properties.

The period saw a weaker performance of the hotel and serviced apartments businesses as a result of drops in both occupancy and room rates amid a sluggish economy.

For its investment properties, Allgreen said that Great World City mall and Tanglin Mall enjoyed higher occupancy and rental rates.

Related link: Click here for Allgreen Properties' financial results

The occupancy rate for offices at Great World City was slightly lower but higher rental rates were achieved.

Allgreen's Great World City complex at Kim Seng Road comprises offices, shop space and serviced residences; the group also has stakes in Tanglin Mall, Tanglin Place and the Traders Hotel near Orchard Road.

Cash and cash equivalents rose from $125.2 million as at end-September 2008 to $170.1 million as at end-September 2009, due largely to proceeds received from sales of units at One Devonshire and Viva, which is located at Suffolk Walk near Novena MRT Station.

According to official data, 227 of Viva's total 235 units were sold as at the end of last month. As for One Devonshire, 150 of the total 152 units were sold as of the same date.

Allgreen has three launch-ready projects in Singapore - RV Residences in the River Valley area, Holland Residences near Holland Village and Suites at Orchard at Handy Road.

As at end-September 2009, the group had net borrowings of about $1.06 billion and gearing of 0.4 time, a reduction from 0.45 time and $1.14 billion as at end-December 2008.

Allgreen's earnings per share rose from 1.96 cents in Q3 2008 to 4.65 cents in Q3 2009.

Net asset value per share stood at $1.47, up six cents from end-December 2008.

On the stock market yesterday, Allgreen closed two cents lower at $1.13.