[SINGAPORE] Metro sank into the red for its second half ended March, with a net loss of S$228.1 million, reversing from a S$6.4 million net profit in the previous corresponding period.
This translates to a loss per share of S$0.276, versus an earnings per share of S$0.008, the mainboard-listed property investment and development group said in its financials released on Friday (May 23).
The losses came amid lower revenue, which was down 14.6 per cent at S$56.2 million from S$65.7 million in the year-ago period on lower contributions from Metro’s retail, sale of property rights and rental income divisions.
Revenue from the property division fell to S$4.6 million from S$5.9 million, mainly from lower sales of property rights of residential development properties in Bekasi and Bintaro, Jakarta. Its retail division recorded a drop in sales at its two Singapore department stores – Metro Paragon and Metro Causeway Point – to S$51.6 million from S$59.8 million.
The six-month period recorded other net expenses of S$12.2 million, as compared to H2 FY2024 which recorded other net income of S$9.7 million, mainly driven by higher net fair-value loss from long-term investments.
These included investments of S$6.3 million in Mapletree Global Student Accommodation Private Trust (MGSA), S$3.6 million in BentallGreenOak (BGO) China Real Estate Fund III and S$6 million for other long-term investments. The group also registered a S$3.5 million decline in interest income and S$2.6 million in foreign exchange losses.
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For the full year, the company recorded a net loss of S$224.8 million, a turnaround from its S$14.6 million net profit for the year-ago period. It netted a S$0.272 loss per share against a S$0.018 earnings per share previously. Full-year revenue fell 9.8 per cent to S$104.5 million from S$115.9 million.
The losses were attributed to non-cash fair-value and impairment losses arising from the group’s China real estate exposure, as Metro’s property division was negatively hit by prolonged sector headwinds in China.
These led to a S$105.4 million share of loss from its associate Top Spring International, stemming from operating losses and fair value losses on investment properties; S$91.1 million in fair value loss from China properties held under its associates and joint ventures; and impairment of amounts due from associates amounting to S$32.9 million.
The group also logged S$23.2 million in fair value losses from investments in MGSA.
Looking ahead, Metro chairman Tan Soo Khoon noted the prolonged property market downturn in China and a “challenging retail environment in Singapore”, amid “strong headwinds” resulting from tariffs.
“The group’s associate, Top Spring, our co-investments with BGO and our other China investment properties will continue to be subject to persistent market headwinds in China and Hong Kong,” Metro said.
It pointed to the Ministry of Trade and Industry’s downgrading of Singapore’s 2025 growth forecast to a range of 0 to 2 per cent, from 1 per cent to 3 per cent previously.
“The spike in uncertainty may lead to a larger-than-expected pullback in economic activity as businesses and households adopt a “wait and see” approach before making spending decisions,” Metro said.
Retail sales in Singapore will likely remain subdued in 2025 as consumer demand is diverted overseas given the strong Singapore dollar, the group added.
“Amid these uncertainties, Metro will exercise caution and prudence while taking proactive measures to maintain strong capital management discipline, including preserving cash, optimising cash flows and liquidity,” it noted.
A final dividend of S$0.02 per ordinary share was proposed for the year, unchanged from the previous year.
The counter ended Thursday 1.2 per cent or S$0.005 higher at S$0.415.
