ST : Bountiful year for two local developers

Feb 26, 2010

Bountiful year for two local developers

By Esther Teo

LOCAL developers SC Global Developments and Allgreen Properties have both posted impressive full-year profits on the back of the rebounding real estate market.

SC Global's net profit last year improved by 28 per cent to $56.9 million - a record for the group since its inception as a developer in 2000.

It said higher profit recognition from its local development projects and the return to profitability of its subsidiary AVJ contributed to its strong performance.

Revenue hit $804.7 million for the 12 months to Dec 31, an impressive 524 per cent increase from $129.1 million the year before.

Full-year earnings per share was 14.39 cents, up from 11.27 cents a year earlier, while net asset value per share rose to $1.21 cents as of Dec 31, from 88 cents.

The group, which develops high-end luxury residences, is recommending a dividend of 1.5 cents a share. There was no dividend in 2008.

SC Global's shares fell three cents yesterday to $1.73.

Chairman and chief executive Simon Cheong is optimistic about prospects.

'The group holds a valuable landbank of over 1.1 million sq ft of developable gross floor area in the prime areas of Orchard Road and Sentosa Cove, which positions the group well as the market continues to improve,' he said.

Allgreen also shone with a 141 per cent increase in full-year profit from $67.4 million in 2008 to $162.7 million last year.

Revenue for the 12 months to Dec 31 increased 75 per cent to $620.8 million, due mainly to higher sales at projects such as One Devonshire in June last year.

Higher occupancies and rental rates in its investment properties like Tanglin Mall also boosted its performance although they were offset by the weaker hotel and serviced apartment sector because of lower occupancy and room rates.

Earnings per share for the year was 10.23 cents, up from 4.24 cents a year earlier, while net asset value per share rose to $1.48 as of Dec 31, from $1.41.

The group is recommending a dividend of four cents a share, from two cents the previous year.

Allgreen's shares remained unchanged yesterday at $1.12.