Selangor Properties posts RM16.9m net loss in 2Q

Selangor Properties posts RM16.9m net loss in 2Q
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KUALA LUMPUR (June 27): Selangor Properties Bhd posted a net loss of RM16.9 million in the second quarter ended April 30, 2016 (2QFY16), from a net profit of RM7.13 million a year ago, as its investment holdings segment sank into deeper loss, coupled with weaker performance across all business segments, despite stronger performance from property investment.

Quarterly revenue was 31.6% higher at RM30 million, from RM22.79 million a year earlier, driven by higher turnover from property investment and investment holding.

For the cumulative six months (6MFY16), it posted a net loss of RM33.01 million or 9.61 sen per share, from a net profit of RM65.22 million or 18.98 sen per share a year earlier, due to weaker performance of its investment holdings segment.

The losses were mainly due to foreign exchange losses of RM33.9 million, as the ringgit strengthened against U.S. dollar and Singapore dollar in the current period, Tthe group explained.

Year-to-date, it incurred a foreign exchange loss of RM58.8 million, as the ringgit strengthened.

Going forward, Selangor Properties expects its property investment to remain stable and to continue to contribute positively to the group.

Its investment properties in Menara Milenium in Damansara Heights and Claremont Shopping Centre in Perth, Australia, continue to enjoy high occupancy rates.

The group plans to launch a high-end 18-storey condominium at Damansara Heights in the second half of 2016; and hence, it is unlikely that there will be any significant profit to be recognised for the current financial year.

"For property development in Bukit Permata, the group has suspended the sales of properties, as a result of the poor market sentiments arising from unfavourable economic environment and continuing stringent bank lending guidelines to the purchasers," it added.

Subject to market conditions, it said the project may be relaunched in early 2017, when the property sector is expected to improve.

On its Damansara Heights' land bank, the group said it is in its initial planning stage, with considerations on design which will provide integration and connectivity with the surrounding Mass Rapid Transit project.

Shares in Selangor Properties closed up two sen or 0.43% at RM4.66 today, for a market value of RM1.6 billion.