Soilbuild reports 12% drop in Q2 net profit to S$20.3m

Property developer Soilbuild on Wednesday said its net profit for the second quarter fell 12 per cent on year to S$20.3 million.

This was due to an increase in its selling and operating expenses, as well as higher finance costs.

But revenue rose 10 per cent to S$96.9 million, due to the progressive recognition of income from its condominium projects such as Leonie Parc View, The Centrio, Montebleue as well as its Tuas Lot factories.

The firm said its total recurrent rental income contributions also saw a steady growth of 38 per cent, as it recognised higher contributions from the leasing of its five completed investment properties.

These include the fully-occupied Eightrium @ Changi Business Park, three units at Senoko Food Connection and seven units at Kranji Linc, Tuas Connection and Penjuru Logistics Hub.

Executive Director Low Soon Sim said Soilbuild has also seen steady progress in its effort to grow its recurrent income base to S$40 million, despite the challenging business environment.

Looking ahead, Soilbuild said it is seeking to develop new growth opportunities such as fee-based income by drawing from its property development expertise.

It added that it remains ready to tap on new opportunities in the capital market.

The firm expects to remain profitable this year with the progressive recognition of revenue from its sold residential and business space units, and the growing rental contributions from leased investment properties.

Source : Channel NewsAsia – 12 Aug 2009

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