Selangor Properties Q4 earnings down 64%

PETALING JAYA: Selangor Properties Bhd’s net profit for the fourth quarter ended Oct 31, 2017 fell 64% to RM20.44 million from RM57.40 million mainly due to fair value loss of RM6.6 million booked in for investment properties in the current year as compared to fair value gain of RM20.7 million in the preceding year corresponding period, as well as marketing costs on AIRA Residence, corporate and administrative costs allocated to its property development division.
Its revenue rose 29% to RM45.23 million compared with RM35.14 million in the previous year’s corresponding quarter, boosted by the property development division as revenue was derived from the work progress recognition over units of AIRA Residence sold.
For the full-year period, is net profit soared 37% to RM92.60 million from RM67.36 million a year ago, while revenue increased 16% from RM120.93 million to RM140.17 million.
Selangor Properties said the property sector is experiencing an oversupply situation in all its sub-sectors for a considerable period with no foreseeable improvement in the short term. For the Klang Valley, the current oversupply of commercial and office space is not expected to improve in the near future.
Although the group expects the operations in Malaysia and Australia to remain positive in 2018, it cautioned that the exposure to foreign currency exchange will continue to affect its profitability.
Selangor Properties shares closed up 0.20% today at RM5.02 with 7,000 shares traded.