Developers report drop in revenue

Aug 1, 2008
Developers report drop in revenue

TWO property developers have reported a drop in second-quarter
revenue, saying poor sentiment in the property market has led to
lower sales - a trend that is likely to continue for the rest of the
year.

Allgreen Properties yesterday posted a 39.1 per cent drop in revenue
to $74.1 million for the three months to June 30. Net profit fell
36.5 per cent to $17.2 million.

It said continuing weak market sentiment was due to the US sub-prime
issue, escalating oil prices and inflationary pressure. It expects
this to persist in the second half, resulting in lower profits, but
believes it will stay profitable for the year.

Allgreen's earnings per share for the quarter slipped to 1.08 cents,
from 1.74 cents a year earlier. Net asset value eased to $1.38 as at
June 30, from $1.40 as at Dec 31.

Meanwhile, MCL Land's revenue plunged in the second quarter to
US$353,000 (S$482,000), from US$133.5 million last year. But the
group's net profit rose 45 per cent in the quarter to US$3.2 million,
thanks to a write-back. Earnings per share rose 43 per cent to 0.86
US cents, while net asset value per share inched up to US$1.45 as at
June 30, from US$1.42 as at Dec 31.

MCL Land expects the completion of Mera Springs and The Esta in the
second half to boost its overall performance.