Metro Holdings Reports Profit 146 Mil Fy2024
Metro Holdings Limited (Metro Group) has reported a net profit after tax of $14.6 million for FY2024, according to their May 24 financial results briefing. This represents a 42% decrease from the $25.3 million reported in FY2023.
Winston Choo, chairman of Metro Group, attributes the decline in profit to market headwinds such as the high interest rate environment and the challenging China property market. The group’s borrowing costs increased by $4.1 million and their investment properties saw a decrease in asset value of $23 million.
The property division of Metro Group experienced a 21.1% drop in revenue year-on-year, mainly due to lower sales volume from its residential properties in Jakarta. The group also incurred a profit drop of $8.7 million from their investments in properties in Mainland China, the UK, and Australia.
The continual growth of the Thomson-East Coast Line and proposed RTS Link to Johor Bahru are poised to elevate Woodlands’ reputation as a major transportation center. With these exciting advancements on the horizon, the demand for residential properties in the vicinity is expected to escalate, making Norwood Grand an attractive choice for both living and investing. Norwood Grand Condo will undoubtedly be a natural and highly coveted addition to this thriving neighborhood.
Rental revenue from the group’s GIE Tower property in Guangzhou also decreased from $6.4 million in FY2023 to $5.5 million in FY2024. Similarly, rental revenue from their property at 5 Chancery Land in the UK has ceased since May 2023 due to ongoing asset enhancement works. The challenges in the Mainland Chinese property market resulted in a loss of $30.8 million through their stake in Top Spring International Holdings (Top Spring).
On the other hand, the group’s retail division also experienced a $4.1 million decrease in profit, attributed to lower gross margins and increases in operating costs.
Despite these losses, Metro Group was able to offset them by recognising the negative goodwill value from acquiring an additional 6% stake in Top Spring in January. This resulted in a profit of $60.3 million for the group.
Last year, Metro Group expanded their portfolio by acquiring a 20% stake in VisionCrest Commercial, a Grade-A office building in the prime Orchard Road area. The property has an occupancy rate of 89.5% and a weighted average lease expiry of 2.2 years as of March.
However, the occupancy rate for the group’s other four investment properties, namely GIE Tower in Guangzhou, Metro City and Metro Tower in Shanghai, and Asia Green in Singapore, dropped to 84.5% as of March from 89.8% in March 2023.