Halving its sales costs has helped drive gains
Revenue for its second quarter saw a 23.3 per cent drop to $2.4 million, from $3.2 million last year. TEE Land's development at The Peak @ Cairnhill 1, along with rental income from its "Workotel" development in New Zealand, contributed to its Q2 revenue.
A year ago, the company recognised revenue from developments at The Peak @ Cairnhill 1 and 448@East Coast, which obtained its Temporary Occupation Permit (TOP) in May last year.
Besides a reduction in costs of sales, construction progresses by TEE Land's Singapore associates, together with the completion and handing over of units to owners of its Thailand associates' projects, helped drive profits.
As at Nov 30, 2013, TEE Land had a cash surplus of $34.6 million, from $29.1 million half a year ago, after its initial public offering (IPO) in early June last year where it was able to raise net proceeds of $57.8 million.
For the year ending May 31, 2013, the group has had eight completed developments, 10 current and 10 future projects to be launched. It currently has contracted $64 million and $16.7 million in sales for ongoing residential property development projects in Singapore and Thailand, respectively. It has also completed acquisition of two plots of land in Bangkok. Future project launches in Singapore include Rezi3Two (Lorong 32 Geylang), Twelve Residences (Hillside Drive) and TRIO (Sam Leong Road).
Overseas, besides the official opening of its "Workotel" in New Zealand, TEE Land will launch its maiden project, Third Avenue at Cyberjaya, Malaysia.
TEE Land said in a statement that it will "remain cautious in view of increased challenges in Singapore". It is also monitoring Thailand's political developments. "While the regional real estate sector is currently facing inherent challenges, we remain convinced of the long-term potential in the Asean region," said Jonathan Phua, executive director and CEO of TEE Land.
The company announced an interim dividend of 0.5 cents per share, and its earnings per share as at Nov 30, 2013 is 37 cents, compared to negative two cents a year ago.
TEE Land shares closed up 0.5 cent at 32 cents yesterday.
Source from Business Times