Metro Holdings' earnings jump 43.4% to S$15.3m

All thanks to its loan notes.

According to a release, Metro Holdings reported an improved bottom-line despite a marginal decrease in its top-line performance. The Group saw a 43.4% rise in net profit to S$15.3 million for the three months ended 31 December 2012 (“3QFY2013”), compared to S$10.7 million in the previous corresponding period (“3QFY2012”), mainly due to a balloon payment of interest income from loan notes held by its core Property Division. The loan notes were liquidated in early 4QFY2013.

Group revenue was down slightly by 2.0% to S$50.6 million in 3QFY2013 from S$51.6 million in 3QFY2012, though the Group did record higher sales from its secondary Retail Division. Still, this was inadequate to fully offset the lower rental income following the disposal of Metro City Beijing held by the Property Division.

Metro’s Chairman, Lt Gen (Rtd) Winston Choo said, “We are encouraged that even against the current competitive operating environment, we have achieved a commendable set of numbers. It was within our expectations that with the divestment of Metro City Beijing in March 2012, rental income from the Property Division would be impacted. As such, we have been channelling our efforts at ensuring an optimal tenant mix and are looking at asset enhancement plans for our existing properties.

Going forward, we will also be focusing on the development of our new joint venture projects – a first-of-its-kind upscale urban community development project in Nanchang, China with Top Spring, and a signature residential condominium at Prince Charles Crescent in Singapore with the Wing Tai group and UE E&C Ltd. In addition to leveraging on our strategic partnerships, we remain on the lookout for profitable projects to deepen our foothold in key markets.”