Singapore’s Oxley Swings to Six-Month Loss as Revenue Drops 63%

Singaporean developer Oxley Holdings posted a fiscal first-half loss attributable to shareholders of S$1.1 million, reversing a year-earlier profit of S$300,000, as revenue plunged 63 percent year-on-year to S$164.4 million ($122 million).

The reduced revenue haul in the six months to December was mainly due to lower recognised revenue for Singapore development projects, partly offset by higher revenue recognition from Oxley Towers KLCC in Kuala Lumpur and improved hotel operations, SGX-listed Oxley said in unaudited results released Thursday.

All of Oxley’s Singapore developments have received temporary occupation permits, and 100 percent of the residential and commercial units have been sold. The group is therefore shifting focus to international projects like Oxley Towers and London residential development Riverscape, said executive chairman and CEO Ching Chiat Kwong.

“Barring unforeseen circumstances, we expect profit contributions from ongoing projects in Malaysia and London over the next 12 months and foresee a rise in Singapore hotel performance amid tourism recovery,” Ching said in a release.

Trimming Debt

The six-month results include the October sale of the Grade A office tower at Oxley Towers KLCC, along with four strata-title retail units on the ground floor, to Alliance Bank Malaysia for MYR 406 million ($86 million). The bank plans to relocate its headquarters to the 24-storey tower upon completion of the building this year.

The KLCC disposal came after Oxley booked a net loss of S$85 million ($62 million) for the fiscal year to last June, with the company attributing the slide from a year-earlier S$7.3 million net profit to a 31 percent decline in revenue and a 28 percent surge in borrowing costs.

Oxley said Thursday that the group’s gearing ratio dipped to 1.44 at the end of December from 1.62 at the end of June as net borrowings fell by S$200 million to reach S$1.3 billion.

“Whilst acknowledging potential challenges in the broader economic environment, we will continue to seek opportunities to divest non-core assets,” Ching said. “Overall, we are cautiously optimistic on the outlook for 2024.”

Overseas Home Sales Update

Sales for Riverscape on the north bank of the Thames in London’s Docklands area saw modest growth, with 62 percent of the development’s 769 private homes already sold for a total of S$414 million. The 50:50 joint project with Irish developer Ballymore is expected to be gradually completed in 2024, Oxley said.

Trinity Wellnessa, a mass-market residential project in Malaysia’s Selangor state, registered 90 percent of its 463 units sold as of January for a total of S$84 million, with construction scheduled for completion in 2025.

In Singapore, Oxley’s hospitality portfolio enjoyed improved rates, with revenue from hotel operations rising 37 percent year-on-year to S$30.1 million in the fiscal first half.