METRO Holdings’ net profit for the half-year ended March was down 23 per cent to S$6.4 million, from S$8.3 million the year before.
This was despite a 3.8 per cent rise in revenue of S$65.7 million for the period, reported the mainboard-listed property investment and development group on Friday (May 24).
Earnings per share stood at S$0.008 for the half-year, down from S$0.01 in the corresponding year-ago period.
Share of profits from joint ventures registered a loss of S$3.9 million in the second half-year, compared to a gain of S$20.4 million in H2 FY2023. This was mainly due to the group’s share of higher revaluation losses from the investment properties and lower operating profit.
Revenue from the property division for the period decreased to S$5.9 million from S$6.7 million year ago, led by lower revenue from GIE Tower in Guangzhou, said the company.
For the full year, net profit was down 42.1 per cent to S$14.6 million from S$25.2 million in FY2023, on the back of a 1.1 per cent decline in revenue to S$115.9 million.
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This was due to higher finance cost, share of the loss from associate Top Spring International Holdings, lower profits generated by its China properties, and by the retail division.
“During FY2024, the group’s property division was negatively impacted by the high interest rate environment where it recorded higher finance cost by S$4.1 million and higher net fair value losses from the revaluation of investment properties by S$23 million, as well as lower operating profits by S$8.7 million from the properties in the United Kingdom and Australia,” Metro said.
Headwinds in China’s property market resulted in a higher loss from its associate Top Spring by S$30.8 million, as well as lower profits generated by the group’s China properties.
This was on top of a lower profit by the group’s retail division, attributable to lower gross margins and increased costs amid a highly competitive trading environment.
Metro chairman Winston Choo noted that while Metro’s profit has been hit by prevailing market headwinds, the company is resilient because of its diversified portfolio across asset classes and geographical regions.
“Our balance sheet remains healthy, and we will proactively manage our existing investment portfolio for optimal returns,” he added.
Metro’s net assets stood at S$1.5 billion and total assets was S$2.3 billion as at Mar 31, 2024.
“In the face of macro uncertainties, it is crucial for us to maintain a diversified portfolio of high-quality assets in resilient sectors and markets we are familiar with and where we have strong networks, alongside experienced and reputable partners,” said Choo, adding that Metro will continue to actively uphold robust capital management practices and diligently manage its investment portfolio.
Metro noted that its associate Top Spring, co-investments with BentallGreenOak and other China investment properties will continue to be buffeted by persistent market headwinds in China and Hong Kong.
A final dividend of S$0.02 per share was proposed for the year, down from the S$0.0225 the year before. This represents a payout ratio of 113.8 per cent. The date payable will be announced later.
Shares of Metro : M01 0% closed S$0.005 or 1 per cent higher at S$0.49 on Friday.
