| Amid the Covid-19 pandemic, Roxy-Pacific Holdings' property sales in Singapore were steady, enabling it to report 1H2021 revenue of S$141.2 million (+20% y-o-y). Net profit attributable to equity holders jumped 110% to S$5.9 million. Its Property Development segment -- which pivoted to online marketing campaigns and virtual showrooms -- achieved a 27% increase in revenue to S$126.5 million, which constituted 90% of the Group’s turnover. The growth was mainly due to revenue recognition from Singapore projects, especially RV Altitude, View at Kismis and 120 Grange. Gross margin for property development was 14%.  All 140 units at RV Altitude have been sold. Total value is $218.8 million, of which $69.7 million has been recognised in Roxy-Pacific's financial statement up to end-June 2021. |
The Group had a total attributable pre-sale revenue of S$564.4 million as at end-June 2021, which will be progressively recognised from 2H2021 to FY2023.
This compares with S$539.4 million as at end-Dec 2020.
 “We are pleased that our financial results have held resilient amidst the global pandemic, well-supported by a diversified portfolio of assets and a broad geographical reach.“We have seen a steady growth in sales momentum for our Property Development segment, comprising mainly of residential developments in Singapore. We continue to be selective in landbank acquisition, with a greater focus on freehold developments that are well-located." -- Teo Hong Lim, Executive Chairman & CEO |
Positioning itself for growth, Roxy-Pacific completed the acquisition of some landbank in Singapore and a building in Australia in 1H2021:
• 14,300 sq ft of residential land at Institution Hill;
• 37,131 sq ft of residential land at Jalan Molek and Guillemard Road in Singapore; and
• a commercial tower at 350 Queen Street, Melbourne, Australia.
|
Landbank location |
Proposed Development |
Land Area (sq ft) |
Gross Floor Area (sq ft) |
Group’s stake |
Attributable Land Cost (S$'m) |
|
Jalan Molek and Guillemard Road |
137 residential units |
37,131 |
103,967 |
100% |
$93.0 |
|
Institution Hill |
60 residential units |
14,300 |
40,040 |
42% |
$23.8 |
|
Total |
197 units |
51,431 |
144,007 |
|
$116.8 |
How Roxy-Pacific's remaining two business segments did in 1H2021:
• Hotel operations: In this segment, the Group continued to be affected by the COVID-19 outbreak as many countries had imposed border control measures, impacting the tourism industry.
Revenue from its owned hotels -- in Singapore, Japan and Maldives -- decreased by 29% to S$10.7 million from S$15.1 million in 1H2020.
• Property Investment: The Group owns stakes in properties in Singapore, Japan, Australia and New Zealand.
Revenue contribution from this segment increased 8% to S$4.0 million in 1H2021. The increase was mainly due to foreign currency appreciation from the rental income from NZI Centre.
Overall, the Group’s investment properties maintained a high level of occupancy at 81% as at 30 June 2021.
Below is a table of the Group's selected financial ratios. Note its adjusted NAV is 72.87 cents, a substantial 42% discount to its recent stock price of 42 cents.
|
Financial Ratios |
30 June 2021 |
31 Dec 2020 |
|
NAV per share |
37.33 |
36.97 |
|
Adjusted NAV per share (SGD cents) |
72.87 |
72.15 |
|
Cash holdings per share (SGD cents) |
29.98 |
30.33 |
|
Net debt to ANAV (times) |
0.70 |
0.64 |
|
Source: Company |
||
Roxy-Pacific ranked No.30 in the 2021 Singapore Governance and Transparency Index. Its 2020 rank was 55. The annual excercise assesses listed companies on their corporate governance disclosures and practices, as well as the timeliness, accessibility and transparency of their financial results announcements. It is jointly conducted by CPA Australia, NUS Business School's Centre for Governance and Sustainability and the Singapore Institute of Directors.
For more info on Roxy-Pacific's 1H2021 results, see the Powerpoint presentation slides here.