Roxy-Pacific profits up 5% to $96.8m in FY14

Thanks to healthy growth from two of its segments.

Despite a 14% decline in revenue to $317.8m due to a weak Property Development segment, Roxy-Pacific found two bright spots which held up growth.

According to a media release by Roxy-Pacific, a homegrown specialty property and hospitality group, it has achieved a 5% increase in net profit to S$96.8 million for the full year ended December 31, 2014, from S$92.2 million in the previous corresponding year.

This was despite a 14% decline in revenue to S$317.8 million, from S$369.0 million over the same corresponding year, mainly due to lower revenue contribution from the Group’s Property Development segment. A healthy growth was recorded from the remaining two business segments – Hotel Ownership and Property Investment.

Said Mr Teo Hong Lim, Executive Chairman and CEO of Roxy-Pacific: “We have remained resilient and delivered our 10th consecutive year of record earnings, amidst a very challenging property development market in Singapore."

“It’s noteworthy that our joint venture projects have continued to reap good results, namely from profit recognition on completion of sale of retail units at 8 Russell Street in Hong Kong; as well as from progressive recognition of profits from JV projects in Singapore such as Natura@Hillview, Millage and Nottinghill Suites. At the same time, Centropod@Changi, our wholly-owned commercial development project, has obtained its Temporary Occupation Permit (“TOP”) in January 2015, thereby underpinning our performance for FY2015."

“We have also broadened our recurring income stream for our Property Investment segment. Apart from Roxy Square, our strong rental income growth from S$1.6 million to S$6.6 million was mainly due to the office rental income from 59 Goulburn Street which we acquired in July 2014. With relatively high tenant occupancy given its strategic proximity to Sydney’s CBD area, this commercial development will provide a stable source of recurring income for the Group.”