Additionally, the group saw lower profit from its retail division due to lower gross margins and increased cost. However, these were partially offset by higher other net incomes and higher share of fair value gain from the group’s 30%-owned portfolio of purpose-built student accommodation (PBSA) properties in the UK.
Meanwhile, the group’s revenue saw a 3.6% y-o-y decline to $48.4 million. Revenue from the property division for 1HFY2025 fell to $3.4 million from $4.6 million in 1HFY2024, due to lower contributions from sale of property rights of the residential development properties in Bekasi and Bintaro, Jakarta.
The group’s retail division reported lower revenue at $44.9 million in 1HFY2025 from $45.6 million in 1HFY2024, mainly due to lower sales from Metro Paragon and Metro Causeway Point, the two department stores in Singapore.
Correspondingly, overall gross profit decreased to $2.5 million in 1HFY2025 from $5.1 million, driven by lower revenue.
See also: Creative guides for ‘similar level of operating loss’ for 2HFY2025
As at Sept 30, the group’s net assets and total assets stood at $1.4 billion and $2.3 billion, respectively.
Yip Hoong Mun, group CEO, says: “We continue to make progress in our measured, ongoing efforts to enhance shareholder value under an operating environment marked by heightened uncertainties. In Singapore, strata sales of retail and office units at our VisionCrest Orchard freehold office property have commenced. In the UK, we recently increased our stake in the award-winning Middlewood Locks mixed-use development from 25% to 50%, and Phase 3 of this development is expected to be completed by end-2024. In Australia, we acquired our 18th property which is a freehold prime office building located in the financial core of Sydney’s CBD. However, we expect that the multiple headwinds persisting in China’s property market and our retail business will continue to weigh on our performance in the near-term.”
Shares in Metro Holdingsclosed flat at 47.5 cents on Nov 13.
