Metro Holdings reports higher revenue, turnover of properties for 1HFY2011

The property development and investment firm's revenue rose 18.5% to S$82.6 million from S$69.7 million in the half year ended September 30, 2009. Net profit attributable to shareholders surged 162.6% to S$58.8 million in 1HFY2011 from S$22.4 million in 1HFY2010.

In a statement, Metro Holdings said that both of its main business segments, namely Property and Retail, reported higher turnover. Gains from the disposal of the commercial property, 1 Financial Street, Beijing contributed significantly to the company's bottom line. Accordingly, profit before tax rose 123.2% to S$67.8 million in 1HFY2011, while net profit after tax jumped 162.4% to S$59.1million.

For the second quarter ended 30 September, Metro’s core Property division reported a 23.1% increase in revenue from S$13.4 million in 2QFY2010 to S$16.5 million in 2QFY2011. This was due to higher rental income from Metro City Shanghai after the completion of the asset enhancement exercise and initial rental from the newly acquired Frontier Koishikawa Building. The company also enjoyed higher occupancy rate at its EC Mall and Metropolis Tower.

Metro Holdings' Retail division reported a 17.6% increase in revenue to S$26.8 million in 2QFY2011, with sales at the new Metro City Square department store contributing most of the improvements. Metro also saw higher trading activities from its retail segment in the Orchard Road shopping district, as well as from festive and other promotional sales events.

Overall the company reported a sterling set of results for the quarter, with profit before tax rising 345.0% to S$58.6 million and net profit after tax soaring 453.3% to S$52.1 million.

Rental income from the firm's investment properties is expected to continue to grow steadily with improved occupancy of Metro City, Shanghai and EC Mall, Beijing. Metro Holdings' newly acquired Frontier Koishikawa Building is also expected to contribute to rental revenue.

The trading environment for the retail trade in Singapore and Indonesia is expected to remain competitive. Although the company's Metro City Square department store in Singapore will continue to contribute to Retail turnover, the base effect of the new store is waning and year-on-year growth will be more subdued going forward.

Winston Choo, Metro’s Chairman, said, “We take a long-term view for the Group’s properties in China. In both first-tier cities and fast growing second and third-tier cities, the market in China continues to show much promise and potential for growth. Leveraging on our strong balance sheet, the Group will continue to capitalise on viable growth opportunities that complement our existing portfolio.

By forging strategic partnerships to share the benefits of relevant experience and expertise, we seek to further strengthen our presence in the Asia-Pacific region and establish our track record in property development and investment sector," he added.