Sixfold Surge In Allgreen 2007 Profit

Source : The Business Times, February 29, 2008

ALLGREEN Properties’ 2007 net profit surged more than sixfold to $493.5 million on the back of a fair value gain of $348.5 million on its investment properties. In contrast, the developer recorded net profit of $75.9 million for 2006.

Excluding revaluation gains, Allgreen’s 2007 net profit came to a more modest $145.0 million but was still 91 per cent higher compared to the previous year. Revenue for the year ended Dec 31, 2007, rose 19.4 per cent to $568.8 million - from $476.5 million a year ago - as the developer sold more homes amidst new launches and saw increased revenue from its investment properties and hotel.

Last year, Allgreen officially launched Cairnhill Residences at Cairnhill Circle, Blossoms@Woodleigh and phase 1c of Pavilion Park at Bukit Batok. Cairnhill Residences is fully sold while Blossoms and Pavilion Park phase 1c are almost fully sold. The company also sold 186 units of its 536-unit Cascadia at Bukit Timah Road.

For investment properties, Allgreen’s Great World City office, retail and service apartment complex and Tanglin Place enjoyed higher occupancies and rents. At Tanglin Mall, however, renovations to increase lettable area meant that the occupancy was lower although rental rates were slightly higher.

At Traders Hotel, room rates and occupancy were higher in 2007 than the previous year, the company said. Allgreen’s earnings per share rose to 31.4 cents in 2007, up from 7.2 cents in 2006. The company declared a dividend of five cents a share.

Going forward, Allgreen said that it expects a property market slowdown in the early part of 2008 but is hopeful that the second half of the year will bring a recovery - in line with what other developers in Singapore have said.

‘The market in the early months of 2008 is expected to be fairly quiet, given the financial and economic uncertainties in the United States,’ the company said. ‘We are optimistic of a pick-up in activities in the second half of 2008.’

Allgreen shares closed two cents up at $1.28 yesterday.