SINGAPORE (Feb 22): Hotel and property group Amara Holdings reported a 36% fall in FY17 earnings to $23.9 million from $37.1 million a year ago.
Group revenue for FY17 increased by 10% to $89.8 million from $81.3 million in FY16. This was mainly due to higher revenue in hotel investment and management segment and property investment and development segment.
Net fair value gains of investment properties rose to $20.5 million in FY17 from $1.8 million in FY16.
Amara Singapore at Tanjong Pagar (Credit: Samuel Isaac Chua/The Edge Singapore)
Cost of properties sold and consumables used for FY17 increased 37% to $9.5 million from $6.9 million in FY16 mainly due to progressive recognition of development costs from property investment and development segment.
Staff costs for FY17 increased by 11% to $26.9 million from $24.3 million mainly due to an increase in start-up costs of a new hotel.
Higher loan drawdown due to ongoing development in construction and start-up costs of a new hotel resulted finance costs in FY17 to increase by 19% to $7.1 million.
Share of results of a jointly-controlled entity, net of tax fell 99% to $0.2 million in FY17 from $28 million in FY16 due to a completed development project.
The group recorded tax expense of $10.4 million on profit before tax of $34.3 million in FY17 which included provision of deferred tax of $6.6 million.
In its outlook, Amara says Singapore's private property prices are turning the corner while office rents are expected to stabilise due to positive economic growth.
Meanwhile, hotels in Singapore and Bangkok are expected to benefit from the growing tourism on the back of positive global economic outlook.
The group’s Amara Signature Shanghai Hotel opened in January and is expected to be fully operational in second half of the year.
This story, written by PC Lee for The Edge Singapore, first appeared on Feb 22.