When considering investing in a condo in Singapore, it is important to take into account the government’s property cooling measures. The Singaporean government has implemented various policies over the years to prevent speculative buying and maintain a steady real estate market. One such measure is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may have a short-term impact on the profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a safer environment for investment.
Heeton Holdings has reported a significant growth in earnings for the second half of its fiscal year 2024, with a y-o-y increase of 221% to $3.85 million for the period ending December 31, 2024. Despite this, the group remains unprofitable for the full year of FY2024.For the 2HFY2024, earnings per share amounted to 0.79 cents per ordinary share, while for the FY2024, it was a negative 0.28 cents per share. The group’s main source of income for the 2HFY2024 was comprised of rental income from investment properties, hotel operations, and management fees. Revenue for the period saw a 10.5% y-o-y increase to $41.1 million, while the full FY2024 recorded a 15.2% y-o-y increase to $78.2 million.Read also: [UPDATE] Tenet EC is 93.2% sold after balloting by second-time buyers AdvertisementAdvertisementThe increase in revenue was mainly attributed to higher occupancies in the United Kingdom and a rise in rental rates for the group’s investment properties. Additionally, the group also recorded a net gain of $3.78 million from the disposal of its subsidiaries, particularly its 70% interest in Gloucester Corinium Avenue Hotel Limited and Ensco 1154 Limited.Property, plant and equipment, which totaled $418.83 million, primarily consisted of hotel properties. This amount saw a $16.92 million increase for FY2024, due to the acquisition of a hotel in Edinburgh, United Kingdom. The appreciation of Pound Sterling, reversal of impairment charges, and disposal of hotels in Japan and the United Kingdom, along with depreciation charges, offset this increase in value.On cash flow, the group saw a decrease of $32.70 million in cash and cash equivalents, primarily due to major inflows and outflows. This includes proceeds from the sale of property, plant and equipment amounting to $26.43 million and proceeds from the sale of subsidiaries totaling $11.37 million. Cash outflows comprised a net repayment of loans from associated and joint venture companies totaling $24.45 million, additions to property, plant and equipment amounting to $40.36 million, and restricted cash pledge for a bank facility of $22.98 million.The group addressed the current uncertain economic landscape, with Singapore facing a greater level of uncertainty amid the Trump administration, by maintaining its prudent and steady strategic expansion.Read also: Showsuite expands into legal-tech real estate solutionsAs the hospitality industry continues to struggle with high operational and labor costs, elevated interest rates, and an uncertain macroeconomic environment, Heeton will focus on providing high-quality and experiential stays for guests through its bespoke boutique brand.Heeton also plans to continue participating in land tenders in the local residential market, often as part of a consortium. Additionally, the group’s two retail malls are expected to continue generating stable and recurring income for its property investment business. For the current financial period, the group has declared a final dividend of 0.5 cents per share.On Feb 20, shares in Heeton closed at 27 cents, down 0.5 cents or 1.818%.