THANKS to a turnaround in its joint ventures, MCL Land yesterday reported a first-quarter net profit of US$5 million, up from just US$1 million in the year-ago period. Earnings per share rose to 1.36 US cents from 0.27 US cents.
Revenue for the three months to March 31 was US$365,000 - compared with US$393,000 for the year-ago period.However, the property firm was helped by contributions from joint ventures which stood at US$4.94 million, against a loss of US$355,000 a year earlier.
The firm said its Q1 revenue arose primarily from rental income from its investment properties.
Also, the underlying profit for the period was US$5 million, compared with US$0.2 million in the first three months of 2007. 'This improvement was due mainly to the completion in March of The Grange, the group's joint-venture project in Singapore, and the sales of the remaining 12 shops at the Kuala Lumpur Suburban Centre in Malaysia.'
MCL added that construction work on its development projects is progressing well. 'The Grange obtained its Temporary Occupation Permit in March 2008, and The Esta and Mera Springs are expected to complete in the second half of the year.'
The group secured a 99-year leasehold land parcel in Yishun Avenue 1 in March. Its purchase of another site - Casa Nassau at Upper East Coast Road - is expected to be completed in July.
Looking ahead, MCL said financial market uncertainties and the global economic slowdown could affect the residential property sector here in the short term.
'However, favourable economic fundamentals should mean that the longer term prospects remain positive. The expected completion of Mera Springs and The Esta in Singapore should benefit MCL Land's overall performance in 2008.'
Its shares rose 5 cents to close at $1.98 yesterday.
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