Metro profit up on fair value gain

METRO Holdings has reported a net profit of $15.5 million for the three months ended Dec 31, 2009, an increase from $557,000 in the previous corresponding quarter.

This was mainly attributed to an unrealised gain in the fair value of the group’s portfolio of short-term investments of $7.7 million, as compared to an unrealised decrease in fair value of $6 million in the previous period.

Revenue also rose by 10.4 per cent in the quarter, from $37.5 million to $41.4 million year-on-year. Metro said high rental income from GIE Tower in Guangzhou and the newly opened EC Mall in Beijing contributed to Metro’s topline revenue improvement. The property division’s revenue for the quarter increased from $13.5 million to $14.2 million.

Five of its properties in China and Malaysia – Metro City, Shanghai; Metro City, Beijing; GIE Tower, Guangzhou; Metro Tower, Shanghai; and Gurney Plaza Extension, Penang – have occupancy rates averaging 91.7 per cent.

Take up of new office buildings in Beijing improved with 1 Financial Street’s occupancy rising from 26.2 per cent to 40.8 per cent in the quarter, while occupancy for Metropolis Tower, Beijing, rose from 4.1 per cent to 32.6 per cent. Occupancy at EC Mall in Beijing was 54.8 per cent.

Metro’s retail division recorded growth of about 13.4 per cent with a revenue of $27.2 million for the quarter. This rise was attributed to the sales performance from the new Metro City Square department store in Singapore, which opened in September.

Metro chairman Winston Choo said: ‘We are pleased with the financial performance of our commercial and retail property divisions as well as the turnaround in fair value of our trading investments.’

Metro said the trading environment for retail trade is expected to remain competitive, both in Singapore and Indonesia. It also anticipates that the fair value of its portfolio of quoted equity investments will continue to be affected by market conditions.

Earnings per share (on a fully diluted basis) for the period was 2.23 cents. At the close of trading, Metro shares ended 2.5 cents higher at 79.5 cents per share.

Source : Business Times – 13 Feb 2010