PROPERTY and hospitality group Roxy-Pacific Holdings on Thursday posted a first-half net profit of S$5.9 million, up 110 per cent from S$2.8 million in the same period a year earlier.

 

Revenue in the six months ended June 30 was S$141.2 million, up 20 per cent from S$118.1 million, thanks to higher sales from its property development and property investment segments.

 

Chairman and chief executive Teo Hong Lim said that the group' s financial results have " held resilient" amid the global pandemic, " well-supported by a diversified portfolio of assets and a broad geographical reach" .

 

The group will continue to be " selective" in landbank acquisition, he said, and focus on freehold developments that are well-located.

 

Revenue from the group' s property development segment stood at S$126.5 million, up 27 per cent from S$99.3 million last year. This contributed 90 per cent of the group' s turnover.

 

The growth was mainly due to a higher percentage of revenue recognition from development projects in Singapore, mainly from RV Altitude, View at Kismis and 120 Grange.

 

However, this was partially offset by absence of revenue recognition from Octavia Killara and West End Glebe, Australia, which obtained its Temporary Occupation Permit (TOP) in FY2020, it said. As at June 30, the group has a total attributable pre-sale revenue of S$564.4 million, the profits from which will be progressively recognised from the second half of 2021 to 2023.

 

Mr Teo said: " We remain prudent and will keep a close eye on property market sentiments, both locally and abroad, amidst the challenging environment brought on by the global pandemic."

 

For property investment, the group' s priority is on building up its recurring income base through proactive asset management, he said, adding that this is for greater resiliency.

 

Meanwhile, for the hotel segment, the group' s efforts are focused on the " streamlining of processes, operational efficiencies, and training of manpower to improve productivity, to be on a stronger footing once the travel market recovers" , Mr Teo noted.

 

The group noted that its hotel operations have been affected by the Covid-19 outbreak. Revenue from the hotel ownership segment fell by 29 per cent to S$10.7 million.

 

First-half earnings per share was 0.45 Singapore cent, up from 0.21 cent in the same period a year earlier.

 

Its gross profit margin rose from 15 per cent in H1 2020 to 18 per cent, due to higher contribution from the property development segment with an improved profit margin.

 

Net asset value per share was 37.33 Singapore cents as at June 30.

 

MEQUITY Hills, an indirect associate of property player Roxy-Pacific Holdings, has entered into an agreement to acquire a 999-year leasehold residential site for S$23 million.

 

The site, which is located at 11 Institution Hill, has an estimated total land area of 5,539 sq ft and a plot ratio of 2.8 under the 2019 Master Plan for residential development, said Roxy-Pacific in a bourse filing after market close on Monday.

 

The acquisition will be financed by a combination of internal funding and bank borrowings, and is not expected to have a material impact on the group' s consolidated earnings and net tangible assets per share for the current financial year ending Dec 31, 2021.

 

Mequity Hills had previously announced its intention to amalgamate the site at 11 Institution Hill with another 999-year leasehold residential site at 10A and 10B Institution Hill that it had acquired for S$33.6 million. The acquisition of the site at 10A and 10B Institution Hill was completed on May 14.

 

The amalgamated site will have an estimated total land area of 14,300 sq ft with a total gross floor area of 40,040 sq ft for residential development.

Although FY2020 results were hurt by impairments and lower development profits booked, we like Roxy-Pacific as a turnaround of results is expected in FY2021, due to profit recognition of projects. 

 

Adjusted NAV of $0.72/share is also higher than the current share price. 

 

We believe that the possible travel bubbles could also lift hotel management revenue. As at 7 Feb 2021, it has total attributable pre-sale revenue of $552.1m, to be recognised from FY2021 to FY2023.

Roxy-Pacific Holdings has sold its land situated at 34 to 36 Mavis Street in Revesby, New South Wales, Australia at a sale price of A$10.8 million ($11.3 million).

The sale was conducted by Roxy-Pacific&rsquo s indirect associate in Australia, RPPG (Revesby), which is held through Roxy-Pacific Developments.

The sale is not expected to have a material impact on Roxy-Pacific&rsquo s consolidated earnings and net tangible assets (NTA) per share for the financial year ending Dec 31.

 

Between March 3 and 9, Roxy-Pacific Holdings independent director Winston Tan Tien Hin acquired 112,000 shares of the company for a consideration of S$38,840 at an average price of 34.7 cents per share.

 

His total interest in the established property and hospitality group is 0.92 per cent.

 

Mr Tan is also executive chairman of Winmark Investment Holdings and non-executive director of Plastoform Holdings.

PROPERTY player Roxy-Pacific Holdings posted a S$32.3 million net loss for H2 ended December, reversing a S$30 million net profit from a year ago, the mainboard-listed company announced on Friday after the market close.

 

Its net loss for the full year stood at S$29.5 million, mainly due to impairment charges on its hotel assets and properties held by its overseas associated companies, as well as additional tax expenses incurred for its divested investment in Hong Kong.

 

But it expects to be profitable in FY2021, " barring any unforeseen circumstances" . The impairment charges for FY2020 were non-cash items. Roxy-Pacific said that its cashflow from operations remained strong at S$84.4 million in FY2020.

 

Revenue for H2 fell 74 per cent to S$80.4 million for FY2020, it dropped 55 per cent S$198.4 million. This was due to lower contributions from both the property development and hotel ownership segments.

 

For property development, full-year revenue fell to S$165.8 million, from S$385.9 million in FY2019, due to the absence of revenue recognition from The Hensley and The Navian, as well as West End Glebe.

 

Lower profit margins for some projects in Singapore as well as unexpected project cost escalation for Octavia Killara also ate into the FY2020 gross profit margin for property development, which fell nine percentage points to 10 per cent.

 

As at end-2020, Roxy-Pacific had a total balance attributable pre-sale revenue of S$539.4 million, the profits of which will be progressively recognised from the start of FY2021 to FY2023.

 

Meanwhile, Roxy-Pacific' s hotel operations were affected by the Covid-19 border control measures which impacted the tourism industry. Revenue from the segment fell 50 per cent to S$25.2 million in FY2020.

 

Revenue from the property investment segment remained relatively stable at S$7.4 million in FY2020, supported by rental income from Roxy Square and NZI Centre. Meanwhile, other operating income increased 129 per cent to S$16.4 million in FY2020, lifted partly by government grants for the Jobs Support Scheme.

 

Roxy-Pacific said of its results: " Despite all the challenges, the group will continue to monitor the evolving pandemic situation and adjust and react proactively with appropriate countermeasures to minimise financial impact for (FY2021)."

 

MEQUITY Hills, a new associate of property developer Roxy-Pacific Holdings, has entered an agreement to acquire a 999-year leasehold residential site at 10A and 10B Institution Hill for S$33.6 million.

 

The site has an estimated total land area of 8,761 sq ft and has a plot ratio of 2.8 under the 2019 Master Plan for residential development, Roxy-Pacific said in a Thursday bourse filing after the market close.

 

Mequity Hills intends to amalgamate the site with another 999-year leasehold site at 11 Institution Hill, after it exercises the Option To Purchase issued on Feb 1, 2021 to acquire it.

 

The combined site will have an estimated total land area of 14,300 sq ft, with a total gross floor area of 40,040 sq ft for residential development.

 

Roxy-Pacific also disclosed in the Thursday filing that its unit RP Ventures has subscribed to 840,000 shares, representing a 42 per cent stake, in Mequity Hills for S$840,000. This makes Mequity Hills an associate of the mainboard-listed company.

 

The other shareholders of Mequity Hills are Macly Capital and LWH Holdings, with a 48 per cent and 10 per cent stake respectively.

 

Roxy-Pacific will finance the purchase of Mequity Hills shares and the cost of the property acquisition with internal funds and bank borrowings.

 

On Jan 6, Roxy-Pacific Holdings independent director Winston Tan Tien Hin acquired 25,000 shares of the company for a consideration of S$8,750. His total interest in the established property and hospitality group is 0.91 per cent. Mr Tan is also executive chairman of Serrano and non-executive director of Plastoform Holdings.

 

On Jan 8, Roxy-Pacific Holdings provided profit guidance for its FY20 (ended Dec 30), noting that the prolonged Covid-19 pandemic has continued to adversely impact the group' s operational performance.

 

The group expects to report a loss for its H2FY20 and FY20 mainly due to the losses, including expected impairments on hotel assets, incurred by the group' s hospitality segment resulting from the pandemic, which has caused an unprecedented collapse in global travel and tourism.

 

This is in addition to the share of losses in overseas associated companies resulting from the impairments of properties and additional tax expense incurred, following the final assessment by the Hong Kong Inland Revenue Department.

 

On Dec 30, 2020, Roxy-Pacific Holdings independent director Winston Tan Tien Hin acquired 25,000 shares of the company for a consideration of S$8,750.

 

His total interest in the established property and hospitality group is 0.91 per cent.

 

Mr Tan is also executive chairman of Serrano and non-executive director of Plastoform Holdings.

Roxy-Pacific Holdings says it expects to report losses for the 2HFY2020 and FY2020 ended Dec 31, 2020, due to the negative impact on its earnings due to the prolonged Covid-19 pandemic.

 

The losses are mainly due to expected impairments on hotel assets incurred by its hospitality segment, and share of losses in overseas associated companies.

The latter resulted in impairments of properties and additional tax expenses incurred following the final assessment by the Hong Kong Inland Revenue Department.

The guidance was based on a preliminary review of the group&rsquo s unaudited financial results for 2HFY2020 and FY2020.

 

Between Dec 9 and 15, Roxy-Pacific Holdings independent director Winston Tan Tien Hin acquired 125,000 shares of the company for a consideration of S$43,750.

 

This increased his total interest in the established property and hospitality group from 0.88 per cent to 0.89 per cent.

 

The five acquisitions of 25,000 shares at 35 cents per share followed on from a very similar pace of acquisitions for the preceding week.

 

Mr Tan is also executive chairman of Serrano and non-executive director of Plastoform Holdings.

 

Between Dec 3 and 8, Roxy-Pacific Holdings independent director Winston Tan Tien Hin acquired 100,000 shares of the company for a consideration of S$35,000.

 

This increased his total interest in the established property and hospitality group from 0.87 per cent to 0.88 per cent.

 

The four acquisitions of 25,000 shares per day followed Mr Tan' s acquisition of 30,000 shares at 35.17 cents per share between Nov 27 and 30.

 

Mr Tan is also executive chairman of Serrano and non-executive director of Plastoform Holdings.

 

Between Nov 27 and 30, Roxy-Pacific Holdings independent director Winston Tan Tien Hin acquired 30,000 shares of the company for a consideration of S$10,550, at an average price of 35.17 cents per share.

 

Mr Tan' s total interest in the established property and hospitality group is 0.87 per cent.

 

The independent director has gradually increased his total interest in the company from 0.71 per cent on 29 March.

 

Mr Tan is also executive chairman of Serrano and non-executive director of Plastoform Holdings.

PROPERTY and hospitality group Roxy-Pacific Holdings' wholly-owned subsidiary RL East will fork out S$93 million to acquire a freehold residential development site near the Aljunied and Mountbatten MRT stations.

 

Located at 217-223A Guillemard Road and 1-21A Jalan Molek, the property occupies a total land area of about 3,450 square metres (sq m) or 37,131 square feet (sq ft).

 

This will be the largest private residential transaction in the year to date, said Shaun Poh, Cushman & Wakefield' s (C& W) executive director of capital markets.

 

At the moment, there are 15 adjoining two-storey terrace houses on the site.

 

Written permission has been obtained for the proposed construction of a part-five, part-eight storey residential development with 137 units, said C& W, which brokered the sale. The side fronting Guillemard Road has a five-storey limit set by the Urban Redevelopment Authority, while the side fronting Jalan Molek has an eight-storey limit.

 

The proposed project will have a maximum gross floor area of around 10,625 sq m or 114,364 sq ft, including a 10 per cent bonus balcony area, according to C& W.

 

In a bourse filing on Thursday, Roxy-Pacific said a plot ratio of 2.8 is allowed for a residential development on the site.

 

RL East has signed an agreement for the deal, although Roxy-Pacific did not disclose the seller' s identity.

 

The freehold site will be acquired via the purchase of the 9,999-year leasehold estate interest in the 30 strata lots on the site, Roxy-Pacific added.

 

It will finance the acquisition with internal funds and bank borrowings.

 

In 2018, The Business Times reported that the site was put up for sale by an unnamed owner at an indicative price of S$99 million.

 

Just a few minutes' walk from the site is another upcoming freehold condominium, Arena Residences, by Roxy-Pacific. The project at 20 Guillemard Crescent is expected to be completed in August 2022.

 

Also in the vicinity is Macly Group' s recently launched 50-unit freehold condominium NoMa, launched in August, along Guillemard Road.

 

C& W' s Mr Poh on Thursday said the latest sale signals the return of property developers' confidence.

 

He believes that over the next few quarters, more developers will enter the market to replenish their residential land banks, given the healthy take-up of recent project sales since the easing of movement restrictions in Singapore and other parts of Asia.

Roxy-Pacific Holdings

 

Between Nov 4 and 9, Roxy-Pacific Holdings independent director Winston Tan Tien Hin acquired 74,500 shares of the listed company for a consideration of S$25,453, at 34.16 cents per share.

 

This brought his total interest in the established property and hospitality group from 0.86 per cent to 0.87 per cent.

 

The share purchase followed his acquisition of 100,000 shares at 34.38 cents per share between Oct 30 and Nov 3.

 

The independent director has gradually increased his total interest in the company from 0.71 per cent on March 29.

 

Mr Tan is also executive chairman of Serrano and non-executive director of Plastoform Holdings.

 

Between Oct 30 and Nov 2, Kian Lam Investment Pte Ltd acquired 200,000 shares of Roxy-Pacific Holdings for a consideration of S$66,000.

 

At an average price of 33.00 cents per share, this took the total interest of executive chairman and CEO, Teo Hong Lim, in the company from 63.06 per cent to 63.08 per cent.

 

Mr Teo has been a director of Roxy-Pacific Holdings since May 1993 and currently sets out the group' s strategies and leads overall management.

 

Meanwhile, between Oct 30 and Nov 3, Roxy-Pacific Holdings independent director Winston Tan Tien Hin acquired 100,000 shares of the listed company for a consideration of S$34,375, at 34.38 cents per share.

 

Mr Tan' s total interest in the established property and hospitality group is 0.86 per cent.

 

The independent director has gradually increased his total interest in the company from 0.71 per cent on March 29.

 

Mr Tan is also executive chairman of Serrano and non-executive director of Plastoform Holdings.

 

Between Oct 7 and 13, Kian Lam Investment Pte Ltd acquired 530,000 shares of Roxy-Pacific Holdings for a consideration of S$171,400.

 

At an average price of 32.34 cents per share, this took the total interest of executive chairman and chief executive officer, Teo Hong Lim, in Roxy-Pacific Holdings from 63.01 per cent to 63.05 per cent.

 

Kian Lam Investment Pte Ltd also acquired 500,000 shares between Sept 30 and Oct 6 at 32.28 cents per share.

 

Mr Teo has been a director of Roxy-Pacific Holdings since May 1993 and currently sets out the group' s strategies and leads overall management.

 

On Oct 13, Roxy-Pacific Holdings executive director and deputy CEO Koh Seng Geok sold 330,000 shares of the listed company for a consideration of S$105,600.

 

At 32.00 cents per share, the married deal decreased his total interest in Roxy-Pacific Holdings from 0.56 per cent to 0.53 per cent.

 

Prior to his deputy CEO appointment on March 23, 2018, he served as chief financial officer, managing the financial, banking, accounting and legal aspects of the group.

 

Mr Koh supports the executive chairman and chief executive officer in the formulation of corporate strategies and the future direction of the group.

 

Between Sept 30 and Oct 6, Kian Lam Investment Pte Ltd acquired 500,000 shares of Roxy-Pacific Holdings for a consideration of S$161,212.

 

At an average price of 32.24 cents per share, this took the total interest of executive chairman and CEO, Teo Hong Lim, in Roxy-Pacific Holdings from 62.97 per cent to 63.01 per cent. Mr Teo has been a director of Roxy-Pacific Holdings since May 1993 and currently sets out the group' s strategies and leads overall management.

 

Meanwhile, between Sept 30 and Oct 2, Roxy-Pacific Holdings independent director Winston Tan Tien Hin acquired 100,000 shares of the listed company for a consideration of S$32,375, at 32.38 cents per share.

 

Mr Tan' s total interest in the established property and hospitality group is 0.85 per cent.

 

The independent director has gradually increased his total interest in the company from 0.71 per cent on March 29.

 

Mr Tan is also executive chairman of Serrano and non-executive director of Plastoform Holdings.