Ho Bee Q1 profit up 43%

Ho Bee Investment's first-quarter earnings climbed 43 per cent to $37.3 million, from $26.1 million a year earlier, as it recognised revenue from residential projects completed in the first three months of the year. Turnover for Q1 2009 rose 17 per cent to $110 million, from $94.2 million in Q1 2008. The bulk came from property development, where revenue rose 18 per cent year-on-year to $104 million. Ho Bee said the increase was mainly due to the higher revenue recognition for two residential projects - Vertis and Quinterra, which obtained temporary occupation permits (TOPs) in January and March 2009 respectively. Ho Bee executive director Ong Chong Hua said payment has been received from almost all buyers of units in Vertis and Quinterra.

Ho Bee's The Coast obtained TOP in April, and payment notices are being sent out in batches. So far, the company has not had any problem collecting payments for The Coast, Mr Ong said. 'Cashflow-wise we are good, and in terms of the outlook, we should also be good, as we will recognise revenue from the projects we have sold,' he said. Q2 earnings will be underpinned by The Coast, as well as Paradise Island and Orange Grove Residences, which will soon receive TOP. Ho Bee has several projects ready for launch, but said it will continue to monitor the market and review its pricing strategy before making any decisions.

Soilbuild posts three-fold rise in Q1 earnings

Soilbuild Group yesterday reported net profit attributable to shareholders of $19.11 million for the first quarter ended March 31, 2009 - more than three times the $6.21 million it earned a year earlier. Revenue jumped 104 per cent to $64.7 million. Property development provided a strong boost, with $61.45 million recognised from business space factories and four residential projects. This was more than twice the amount recognised in Q1 last year. Property rental revenue grew 38 per cent from a year ago to $3.1 million. There were contributions from two new business space properties, and higher contributions from existing investment properties.