SINGAPORE (EDGEPROP) - Metro Holdings M01 1.65% announced that its FY2023 ended March earnings has increased by 6.1% y-o-y to $25.2 million. This comes on the back of revenue gaining 16.7% y-oy- to $117.2 million from $100.5 million last year, mainly due to higher sales from Metro Paragon and Metro Causeway Point, the two department stores in Singapore. The revenue increase was partially offset by lower revenue from the property division due to lower sale of property rights of the residential development properties in Bekasi and Bintaro, Jakarta.

The property division recognised lower revenue by $0.7 million to $13.2 million in FY2023 from $13.9 million in FY2022 mainly due to lower sale of property rights of the residential development properties in Bekasi and Bintaro, Jakarta. Revenue from GIE Tower, Guangzhou, increased marginally from $6.3 million in FY2022 to $6.4 million in FY2023.

In FY2023, the group recorded higher contribution by $11.7 million from the investment properties of associates and joint ventures in China with lower rental rebates and waivers granted to tenants arising from China’s Covid-19 lockdowns and an absence of a one-off impairment loss of $36.3 million on the amounts due from associates.

However, the group’s FY2023 results were affected by a share of associate and joint venture’s fair value loss of $9.7 million on investment properties in China and Australia in FY2023, as compared to a share of fair value gain of $4.4 million in FY2022, a higher net fair value loss on long and short term investments and lower dividend income from long term investments.

On a 2HFY2023 basis, revenue was 6.1% higher y-o-y at $63.4 million, while earnings came in 54.0% higher at $8.3 million from $5.4 million a year ago.

As at end March, cash and cash equivalents stood at $329.3 million.

See also: Boustead Projects posts earnings of $10.7 million in 2HFY2023, up 97% y-o-y

The group has declared a final dividend of 2.0 cents, along with a special dividend of 0.25 cent. This represents a payout ratio of 74.1%.

Winston Choo, chairman of Metro says: ““Metro will continue to position our quality real estate portfolio in resilient sectors, both in our key countries and together with our strategic partners.”

Shares in Metro last traded at 60 cents on May 25.

This article first appeared on The Edge Singapore.