>

Thakral posts 85% rise in 4Q earnings to $1.5 mil

By Stanislaus Jude Chan

/ The Edge Singapore |

February 28, 2018 11:07 AM SGT

Join our Telegram channel and follow our Facebook for the latest update.

SINGAPORE (Feb 27): Thakral Corporation saw its earnings rise 85% to $1.5 million for the 4Q ended December, from $0.8 million a year ago.

This was mainly due to a profit of $1.2 million which was attributable to non-controlling interests in 4Q16. Net profit fell 34% to $1.3 million in 4Q17, from $2.1 million a year ago.

Full-year earnings surged to $37.7 million in FY17, from $0.4 million a year ago. This was due to a one-off gain of $33.9 million from the sale of its warehouses in Hong Kong completed during the final quarter of 2017.

4Q revenue fell 5% to $42.2 million, from $44.4 million a year ago.

Administrative expenses rose 36% to $8.3 million in 4Q17, from $6.1 million a year ago.

This was mainly attributable to an increase in professional fees, which include management fees of $1.5 million in relation to a Japanese property investment during the quarter.

Staff costs also increased due to special bonuses paid to certain directors and staff involved in the warehouse properties in Hong Kong.

Net Asset Value per share at Dec 31 Dec, 2017, rose to $1.00, compared to 74 cents a year ago. This reflects the higher value from the disposal of the warehouse properties as well as the strong growth in the valuation of the group’s investments in Japan.

As at end December, cash and cash equivalents stood at $34.9 million.

“We have benefitted from our strategic divestment of our warehouse properties in Hong Kong which enabled us to pare down debt, fund growth opportunities and finance asset enhancement initiatives. With a stronger balance sheet, we are well-poised to refresh our portfolios and make new investments to take advantage of new market prospects,” says Natarajan Subramaniam, independent non-executive chairman of Thakral.

To sustain long-term growth, the group says it will be exploring other markets such as Singapore and other Asean countries where the potential for real estate demand is strong.

This story, written by Stanislaus Jude Chan for The Edge Singapore, first appeared on Feb 28.

Tags:

Follow our channels to receive property news updates 24/7 round the clock.

Subscribe to our newsletter