Singapore stock Ho Bee Land Limited (SG:H13) declined over 2% as it turned to a loss in its full-year results for 2023. The real estate developer slipped to a net loss of S$259 million in 2023 from a net profit of S$167.1 million in the prior year. The downturn was triggered by the unrealized fair-value losses on its portfolio of investment properties in London. For the full year, the fair value loss on investment properties amounted to $363.9 million, up from S$98.7 million in 2022.
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Despite facing losses, Ho Bee intends to issue a first and final dividend of S$.03 per share, marking a reduction from the S$.08 paid for FY2022.
Ho Bee Land focuses on property investment and property development.
Silver Lining in the Turmoil
For the second half of 2023, Ho Bee Land reported higher revenue of S$289.4 million, which was 12% higher than the same period a year ago. This growth is primarily driven by a 26% surge in the company’s property sales, particularly in Australia. However, the company posted a net loss of S$102.7 million in the second half compared to a net profit of S$16.4 million in the corresponding period of 2022.
Meanwhile, the company’s rental income remained stable at S$130.3 million during the second half. The stable rental income during a significant financial downturn underscores the robustness of Ho Bee Land’s operations. As a result, there remains potential for the company to regain its financial footing amid this cyclical real estate market.
Over the last 12 months, Ho Bee Land’s share price has declined by over 25% in trading.
