First Sponsor Group has reported earnings of $93.02 million for the FY2024 ended Dec 31, 2024, up 642.8% y-o-y. 

 

For the 2HFY2024 earnings came in at $81.1 million. 

 

The group recorded a revenue growth of 12.2% for FY2024 of $317.56 million, up from the $282.9 million in the same period a year ago. However, 2HFY2024 revenue declined by 1.6% y-o-y to $144.7 million.

 

The group says that the increase in earnings is due to a maiden profit contribution from NSI, a Dutch commercial property listed on Euronext Amsterdam, as an associated company of the group. 

 

The European property holding portfolio generated &euro 27.3 million ($38.33 million) of operating income in 2HFY2024, a 5.6% increase from the same period last year. This was due mainly to the full period contribution from the Allianz Tower Rotterdam, which was acquired in September 2023, and stronger contributions from the Utrecht Centraal hotels and the Dutch Bilderberg hotels.

 

Also, higher fair value gain and net gain on settlement from the group&rsquo s financial derivative portfolio, offset by higher foreign exchange loss. In December, the group commenced legal action against a borrower in the Shanghai court to recover an outstanding loan principal of RMB375.8 million. The first hearing has been scheduled for March 2025. 

 

The group also saw growth in earnings due to higher fair value gain from its investment properties, but this was partially offset by a write-down of some of the properties in China and impairment of goodwill acquisition of the Dutch Bilderberg hotels. 

 

Any further interest rate cut in the regions that the group operates in, namely the EU, China and Australia, will have a positive impact on the group. 

 

The board has recommended a final tax-exempt (one-tier) cash dividend of 3.55 cents per share if approved, which will result in a total dividend for FY2024 of 4.65 cents per share. 

 

Acquisition will be funded by net proceeds from a rights issue of perpetual convertible capital securities in September

 

FIRST Sponsor is proposing to lift its stake in Dutch property developer NSI to about 22 per cent from around 17.5 per cent with a proposed share purchase amounting to 18.9 million euros (S$26.6 million), or 20.50 euros per sale share.

 

Listed on Euronext Amsterdam, NSI has a property portfolio of 44 office properties across Amsterdam worth about 996 million euros. Some 56 per cent of NSI&rsquo s portfolio value was situated in Amsterdam as at Sep 30, 2024.

 

On Thursday (Nov 28), First Sponsor said its indirect wholly owned subsidiary would acquire 920,839 NSI shares, in addition to the 3.5 million shares in the company that it already owns as at Nov 27.

 

The move presents a strategic opportunity for First Sponsor to &ldquo further meaningfully increase its equity interest in NSI in a single transaction, thereby expanding and enhancing the group&rsquo s long-term property holding business in the Dutch real estate market&rdquo , it said.

 

The acquisition will be funded by net proceeds from the group&rsquo s rights issue of perpetual convertible capital securities in September this year.

 

Based on unaudited financial results of NSI as at end-September, its book value and net tangible asset value attributable to the sale shares were about 32.3 million euros.

 

On a pro forma basis, the proposed acquisition is estimated to result in an associate&rsquo s share of profit amounting to about 13.4 million euros, or around S$18.9 million, said First Sponsor.

 

The transaction is hence expected to be material to the group&rsquo s results for the financial year ending December 2024.

Pre-sales for its China development projects remain subdued in Q3 amid continuing weak property market sentiment

 

FIRST Sponsor Group : ADN -0.93% is cautiously optimistic about a market turnaround in its China property business, it said on Monday (Oct 28).

 

In an interim update for its third quarter ended Sep 30, the developer noted that the China property market sentiment continued to be weak in Q3. As a result, pre-sales for its development projects remained subdued.

 

&ldquo Most of these development projects are at an advanced stage of construction, with some projects having commenced handover, or are expected to commence handover within the next 15 months,&rdquo it said.

 

Listed on the Singapore Exchange since 2014, the developer has a presence in the Netherlands and China.

 

It owns commercial properties including hotels and provides property financing services in those two countries as well as Germany.

 

Through its majority-owned entity, the group acquired the commercial component of a mixed-use development project in Sydney, Australia, for a consideration of A$24.7 million (S$21.6 million) in September.

 

This translates to less than A$4,000 per square metre (sq m) for the 6,400 sq m of commercial space.

 

The entity previously owned the hotel component of the development. Part of the newly acquired space will be &ldquo utilised to enhance the capacity and facilities of the hotel component&rdquo , said First Sponsor.

 

Regarding its European portfolio, the group said that it maintained its strong performance in Q3, with total operating income of 14.8 million euros (S$21.2 million). This is a 6 per cent increase from the 13.9 million euros over the same period last year.

 

The increase was largely driven by the newly acquired Allianz Tower Rotterdam in September 2023, as well as stronger contributions from its hotel properties Le Meridien Frankfurt and Bilderberg Europa Hotel Scheveningen, which was closed for renovation for most of last year.

 

For the first nine months of 2024, First Sponsor achieved total operating income of 40 million euros, up 15.2 per cent from the 34.7 million euros recorded in the corresponding period a year ago.

 

Looking ahead, the group expects the completion of its property holding projects to &ldquo further enhance its recurring income&rdquo . These include the redevelopment of the Puccini Milan and Prins Hendrikkade Amsterdam hotels in FY2025, and the office and residential components of the Dreeftoren Amsterdam development in FY2025 and FY2026, respectively.

 

The Sydney project on Pitt Street is expected to be complete in FY2027, while the Meerparc Amsterdam redevelopment project will reach completion in FY2028.

It intends to use net proceeds to fund expansion plans, strengthen financial position and capital base

 

MAINBOARD-LISTED property developer First Sponsor Group : ADN 0% on Wednesday (Sep 25) said it raised gross proceeds of about S$244 million from its recently concluded rights issue.

 

A total of 225,910,315 Series 3 convertible securities were available for subscription, but the rights issue was oversubscribed by 4.4 per cent as at its close on Sep 20.

 

The group in August proposed a renounceable and non-underwritten rights issue of perpetual convertible capital securities at S$1.08 apiece on the basis of one Series 3 convertible security for every five existing shares.

 

First Sponsor added that it intends to use net proceeds from the rights issue to fund expansion plans, and to strengthen its financial position and capital base.

 

It earlier said it plans to use 57.6 per cent of the net proceeds to finance its property development, property holding and/or property financing businesses.

 

Up to 42.4 per cent of the net proceeds may also be used to fund the proposed acquisition of stakes in a project company.

 

The securities are expected to be listed and quoted on the mainboard from 9 am on Sep 30.

 

Shares of First Sponsor closed flat at S$1.08 on Wednesday, before the announcement.

They will be issued at S$1.08 each on the basis of one Series 3 convertible security for every five existing shares

 

FIRST Sponsor Group is proposing a renounceable and non-underwritten rights issue of perpetual convertible capital securities to raise S$283.8 million.

 

The perps will be issued at S$1.08 each on the basis of one Series 3 convertible security for every five existing shares, the mainboard-listed company said on Friday (Aug 23).

 

Security holders may choose to convert the perps at an initial conversion price of S$1.08, subject to adjustment. The conversion price, however, should not be less than the nominal or par value of the share, said the company.

 

The initial conversion price of S$1.08 represents a discount of about 0.5 per cent to the volume-weighted average price of S$1.085 apiece for shares traded on Jul 23, the last full market day prior to this announcement.

 

The perps will have a distribution rate of 4.85 per cent per annum and will not have a fixed redemption date.

 

But the company may redeem all or some of the perps, as well as unpaid distribution and arrears of distribution, at any time on or after six months from the issue date.

The Series 3 convertible securities are expected to be issued on Sep 30. DBS has been appointed as the manager of the rights issue.

 

After deducting professional fees and related expenses incurred by the rights issue, First Sponsor estimates the net proceeds to amount to about S$283 million.

 

First Sponsor said it plans to use net proceeds from the rights issue to fund expansion plans, and to strengthen its financial position and capital base.

 

&ldquo The rights issue will also provide shareholders who are confident of the future prospects of the company with the opportunity to further participate in the equity of the company, while benefiting from the income derived from the Series 3 convertible securities,&rdquo it added.

 

First Sponsor noted that it is in ongoing talks with a co-investor, who holds a majority interest in a project company, to acquire the co-investor&rsquo s stake. The project company is developing a residential project in Dongguan, China.

 

It also noted that the net proceeds may also be used to repay the company&rsquo s borrowings, for investment in short-term money markets or debt instruments, as well as other purposes on a shorter-term basis that the directors may deem appropriate in First Sponsor&rsquo s interest.

 

First Sponsor operates in property development, property holding and property financing in China, Australia and Europe.

Revenue is up 27.2%, led by increases from the sale of properties and hotel operations

FIRST Sponsor Group : ADN 0% on Thursday evening (Jul 25) reported a net profit of S$11.9 million for the half year ended Jun 30, up 12.4 per cent from S$10.6 million a year ago.

 

This was despite significantly higher net financing cost in H1 2024, said the company, which operates in property development, property holding and property financing in China, Europe and Australia.

 

Gross profit increased 9.8 per cent to S$71.8 million, from S$65.4 million previously, mainly due to the sale of properties, property financing and hotel operations. This was offset by lower gross profit from the rental of investment properties.

 

Earnings per share stood at S$0.0107, down 7 per cent from S$0.0115 in H1 2023. It was lower despite a higher net profit due to the issuance of additional shares upon the exercise of warrants in H1 2024.

 

Revenue surged 27.2 per cent to S$172.9 million in the six-month period, compared with S$135.9 million in the year-ago period.

 

First Group attributed the increase in revenue mainly to the sale of properties and hotel operations, though this was partially offset by falls in rental income from investment properties and revenue from property financing.

 

On the property development front, pre-sales for the group&rsquo s China projects remained muted due to weak property market sentiments, despite significant easing of property-related measures.

 

But as most of these projects are at advanced stages of construction, the cashflow burden is manageable, First Group added. It is hopeful for a market turnaround in the near future.

 

As for the property holding business, the European property portfolio remained strong, due mainly to the newly acquired Allianz Tower Rotterdam and strong contributions from various hotels which were closed for renovations for a large part of H1 2023.

 

This was partially offset by the loss of income due to lease terminations of tenants in Meerparc Amsterdam at the end of 2023, ahead of its redevelopment.

 

In relation to managing its foreign exchange risk, the group has sufficiently hedged its foreign currency exposure arising from overseas assets through foreign currency debt and financial derivatives that create corresponding foreign currency liabilities.

The property will be integrated into a redevelopment plan comprising 241 apartments, an upper-upscale hotel, and event space

 

A CONSORTIUM that is 90.5 per cent owned by First Sponsor Group has struck an A$24.7 million (S$22.4 million) deal with City Tattersalls Club to purchase the social club&rsquo s property in Sydney.

 

Located at 194 to 204 Pitt Street, the partially heritage-listed property spans about 3,200 square metres across multiple storeys and a basement.

 

This will be integrated into a redevelopment plan comprising 241 apartments, an upper-upscale hotel, and event spaces.

 

A presale launch for the residential apartments segment of the project is scheduled to commence in early 2025, led by CBRE.

 

The City Tattersalls Club redevelopment received approval in 2021, and private construction company Richard Crookes Construction was named the appointed builder last year.

 

The joint-venture project is undertaken by a consortium led by First Sponsor and ICD Property, a Melbourne-based property development group.

Works onsite remains on schedule with bulk excavation and installation of the jump form almost complete, said First Sponsor, ICD Property and City Tattersalls Club in a joint statement on Monday (Jul 15).

 

A jump form is a climbing concrete formwork used in constructing large, vertical concrete buildings.

 

City Tattersalls Club chairman Patrick Campion said the club had explored several options to sell the property but ultimately accepted &ldquo the best offer presented&rdquo by the consortium led by First Sponsor.

 

This comes as the property&rsquo s existing heritage faç ade, and key interior features of its buildings, will be &ldquo respectfully restored and maintained&rdquo .

 

&ldquo We recognise the importance of the City Tattersalls Club within Sydney, Australia, and are glad that we have the opportunity to do our part to help the club safeguard its future,&rdquo said First Sponsor chief executive Neo Teck Pheng.

 

&ldquo We look forward to working alongside BVN Architects and FJC Studio (formerly FJMT Studio) to enhance the future use of the former club premises to ensure it adds value to the local community and aligns with the project&rsquo s broader vision,&rdquo he added.

 

First Sponsor Group is paying &euro 42.9 million ($62.5 million), or &euro 20 per share, to increase its stake in a listed Netherlands property company NSI by 10.65%.

 

According to Hong Leong-backed First Sponsor Group, the NTA of the shares to be acquired is &euro 75.6 million.

 

In a stock exchange announcement released on May 4, First Sponsor Group says it already owns 2.87% of NSI from prior open market purchases.

 

Upon completion of the acquisition, its total stake in NSI will increase to 13.52%.

 

First Sponsor Group says the consideration was arrived at based on arm&rsquo s length negotiations that took into account NSI' s underlying property portfolio, current property market conditions in The Netherlands, historical and current results of NSI, and its historical dividends.

 

NSI, traded on Euronext Amsterdam, owns a portfolio of 45 office properties majority in Amsterdam, valued at just over &euro 1 billion as at March 31.

 

" The acquisition presents a strategic opportunity for the group to acquire a non-controlling but substantial interest in NSI, which has a large portfolio of office properties across The Netherlands, and marks the further extension of the group&rsquo s long-term investment in the Dutch real estate market," says First Sponsor Group.

 

Besides the Netherlands, First Sponsor Group owns and has developed properties in Germany, Italy, Australia and China.

 

The acquisition will be paid in cash.

On Sep 25, First Sponsor Group : ADN 0%&rsquo s Ho Han Khoon acquired 40,000 shares at S$1.22 per share. With a consideration of S$48,888 this took his total interest in the property development, holding and financing company from 31.46 per cent to 31.47 per cent.

 

Ho Han Khoon has been the alternate director to non-executive chairman Calvin Ho Han Leong since May 2014. Ho Han Khoon is currently holding the position of executive vice-president of Tai Tak, where he is responsible for overseeing Tai Tak group&rsquo s overall business and financial strategy, investments, and operations.

 

On July 27, the group reported H1FY23 (ended June 30) revenue of S$115.3 million, an increase of 17.9 per cent from H1FY22. This was due mainly to the increase in revenue from hotel operations of S$34.7 million and rental of investment properties of S$2.3 million. The increase was partially offset by the decrease in revenue from sale of properties of S$2.4 million and property financing of S$14 million. The H1FY23 net profit was S$10.6 million, representing an 85.1 per cent decline from H1FY22, due mainly to lower property financing income and the absence of one-off disposal gains. Following from Q1FY23, the group&rsquo s European operating hotels continued their recovery with occupancies in Q2FY23 close to their pre-pandemic 2019 levels. Profitability of the hotels was however adversely impacted by high energy and labour costs as well as the temporary closure of two Dutch Bilderberg hotels in H1FY23 due to major renovation works. The group&rsquo s property development projects include offices, retail, residential and hotel developments in the Netherlands, Australia, and China. Its property portfolio comprises commercial properties (including hotels) in the Netherlands, Germany, and China. The group provides property financing services mainly in the Netherlands, Germany, Australia, and China.

 

First Sponsor Group ADN -2.44% has, through its indirect wholly-owned subsidiary, FS NL Holdings, acquired a 33% stake in the capital of Rotali B.V. The group was making the purchase along with Cobb Netherlands B.V., Maleny Netherlands, Robinvale Netherlands. All three companies are limited liability companies that were incorporated in the Netherlands.

 

The group has also acquired Rotali&rsquo s outstanding shareholder loans.

 

Rotali holds the legal and beneficial title to the Allianz Tower, an office building located at Coolsingel 120 in Rotterdam. It is a Grade A office space with a national credit rating of AAA and is located in the heart of Rotterdam&rsquo s central business district (CBD). The building is also located next to the Beurs metro station, just two stops away from the Rotterdam Central Station.

 

The building, which has a leasehold tenure of 99 years ending on Dec 22, 2087, has a three-storey basement, ground floor, 21 upper floors and 207 indoor parking spaces. Its total lettable floor area measures 19,607 sqm. The ground rent has been paid in advance for the entire duration of the lease.

 

As at Sept 18, the property is fully leased to Allianz Nederland Groep. The lease will expire on Dec 31, 2035 and is renewable for consecutive periods of five years each.

 

However, the tenant has a one-off right to terminate the lease agreement on Dec 31, 2030, with a one year notice period and subject to a payment equivalent to 22.5 times of the initial monthly rent.

 

The share purchasers, on Sept 15, paid EUR15.6 million, which is the agreed preliminary share purchase price. The amount was arrived at based on estimates of the cash and debt of the target as at the date of completion.

 

The group&rsquo s pro rata portion was EUR5.2 million or $7.6 million.

 

Based on Rotali&rsquo s audited financial statements for the financial year ended Dec 31, 2022, the book value of, and net tangible asset value attributable to First Sponsor&rsquo s pro rata portion of the target shares was approximately EUR11.4 million. As the target shares are not publicly listed and traded, the group is not able to determine their available open market value.

 

The total cash consideration is equal to the property&rsquo s agreed commercial value of EUR62.0 million including other factors including cash and excluding debt and fees.

 

The group, which also acquired Rotali&rsquo s outstanding shareholder loans, paid EUR46.0 million &ndash or $67.2 million &ndash in cash for them.

 

According to First Sponsor, the acquisition was a good opportunity for the group to acquire a Grade A office building in Rotterdam&rsquo s CBD. The move will help expand the recurrent income base for its property holding and property financing business segments.

 

The acquisition was funded by existing cash resources and committed credit facilities.

 

First Sponsor Group ADN 3.88% , which is 35.72% held by City Developments, and 45.63% owned by Tai Tak Estates, reported earnings of $59.9 million for the 2HFY2022 ended Dec 31, 2022, 14.1% higher than the earnings of $52.5 million in the corresponding period the year before.

 

For the FY2022, the group&rsquo s earnings increased by 8.1% y-o-y to $131.3 million.

 

The higher earnings are attributable to the share of after-tax profit of associates and joint ventures (JVs), which surged by 59.6 times to $19.4 million in the 2HFY2022, up from $325,000 in the 2HFY2021.

 

The contribution by the group&rsquo s associates and JVs in China improved from a loss of $2.8 million in 2HFY2021 to a profit of $39.7 million in 2HFY2022. In particular, the 27%-held Skyline Garden project in Dongguan contributed a share of profit of $39.6 million to the group in the 2HFY2022, mainly boosted by its handover of the four fully sold residential blocks in December 2022.

 

The reversal to profitability was offset by the contribution from its European associates and joint ventures, which fell to a loss of $20.1 million in 2HFY2022 from a profit of $3.1 million in the same period the year before as the performance was significantly affected by the impairment of the various investment properties held which led to a share of loss of $19.0 million in total.

 

&ldquo Property development remains the key business segment of the group. The group, on its own and with joint venture partners, made a record purchase of four development land plots (all of which are in Dongguan) in FY2022,&rdquo says Neo Teck Pheng, group CEO of First Sponsor Group.

 

&ldquo The group&rsquo s share of the land purchase consideration is approximately $656 million. As a result, the group will see a record number of development projects under pre-sale in FY2023,&rdquo he adds.

 

During the 2HFY2022, the group&rsquo s revenue fell by 27.8% y-o-y to $312.2 million mainly due to the lower revenue from sale of properties, property financing and rental of investment properties and partly offset by the increase in revenue from hotel operations.

 

Revenue from sale of properties in the 2HFY2022 fell by 44.7% y-o-y to $184.8 million due mainly to a lower number of residential units in The Pinnacle project handed over in 2HFY2022 compared to 2HFY2021. The decrease was partially offset by the first time handover of 111 car park lots from The Pinnacle project in the 2HFY2022.

 

Rental income from investment properties fell by 6.8% y-o-y to $6.7 million mainly due to the depreciation of the Euro against the Singapore dollar (SGD) during the period. This is partly offset by the contribution from the retail mall in Shanghai that was acquired by the group via an auction in April 2022.

 

Revenue from hotel operations increased by 224.6% y-o-y to $86.7 million due to the consolidation of revenue from the eleven Bilderberg hotels in the Netherlands after the group&rsquo s acquisition of a 95% stake in Queens Bilderberg (Nederland) B.V. from its 33%-held associate, FSMC, in May 2022.

 

The other hotels in Europe also recorded an increase in their aggregate revenue of $14.4 million, up 81.4% y-o-y due to the recovery in the hospitality sector arising from the removal of Covid-19 restrictions.

 

Revenue from property financing fell by 47.2% y-o-y to $34.1 million mainly due to the lower average Chinese property financing loan book for 2HFY2022 of $223.1 million compared to $560.7 million in 2HFY2021. The decrease was also attributed to the absence of a one-off $5.2 million (RMB25 million) fee earned in 2HFY2021 for the early redemption of the three-year convertible bond secured on a hotel in Dongguan.

 

Gross profit for the 2HFY2022 fell by 17.8% y-o-y to $139.9 million mainly due to the lower gross profit from the sale of properties and property financing.

 

In the 2HFY2022, the group obtained a higher overall gross margin of 44.8% compared to 2HFY2021&rsquo s 39.3%.

 

During the same period, the group recorded other losses of $0.1 million which is related to the write off of goodwill arising from the group&rsquo s acquisition of an indirect 70%-owned subsidiary, CDFQ. This is down from the other gains of $5.7 million recorded in 2HFY2021.

 

FY2022 revenue fell by 27.4% y-o-y to $427.5 million due to lower revenue from sale of properties, property financing and rental of investment properties.

 

Gross profit fell by 14.6% y-o-y to $206.1 million. The group achieved a higher overall gross margin of 48.2% in FY2022, up from FY2021&rsquo s 41.0%.

 

Earnings per share (EPS) for the 2HFY2022 and FY2022 stood at 4.52 cents and 9.90 cents respectively.

 

A final cash dividend of 2.70 cents per share has been declared for the period, up from 2.35 cents per share declared in the same period the year before.

 

If approved, the total dividend declared for the FY2022 will come up to 3.80 cents per share, making this a record dividend payout for the group.

 

The final dividend is expected to be paid out on May 19.

 

As at Dec 31, 2022, cash and cash equivalents stood at $270.3 million.

 

&ldquo Backed by a strong balance sheet, substantial potential equity infusion from the exercise of outstanding warrants and unutilised committed credit facilities, the group is ready to capitalise on any good business opportunities when they arise,&rdquo says Neo.

 

Between Aug 4 and 5, First Sponsor Group : ADN +3.03% non-executive chairman Calvin Ho Han Leong acquired 300,000 shares of the company at an average price of S$1.29 per share. With a consideration of S$388,211 this increased his total interest in the group from 46.44 per cent to 46.47 per cent. It followed on from the acquisition of 599,000 shares of the company at an average price of S$1.37 per share between Mar 17 and 18 and 63,900 shares at S$1.34 per share on Feb 24. Ho was appointed non-executive chairman of the company in April 2015. Prior to this, he had served as the non-executive vice-chairman of the company since Oct 1, 2007. He has also accumulated extensive experience during his tenure as CEO of Singapore-incorporated Tai Tak Estates.

 

Between Aug 3 and 4, First Sponsor Group : ADN +2.36% alternate director to the non-executive chairman, Ho Han Khoon, acquired 200,000 shares of the listed company for a consideration of S$250,800. At S$1.25 per share, this increased his total interest in the company from 31.43 per cent to 31.45 per cent.

 

On Jul 29, First Sponsor Group reported a H1 2022 net profit of S$71.3 million, representing 3.5 per cent growth from H1 2021, with the group also gaining 2 new residential development projects In Dongguan in July 2022.

 

Ho&rsquo s recent acquisitions followed similar acquisitions following the H1 2021 results, when he acquired 195,000 shares at S$1.40 per share.

 

Ho was appointed an alternate director to Calvin Ho Han Leong on May 19, 2014. He is currently holding the position of executive vice-president of Tai Tak, where he is responsible for overseeing Tai Tak group' s overall business and financial strategy, investments and operations.

 

First Sponsor Group, which is 35.72% held by City Developments, and 45.63% owned by Tai Tak Estates, reported earnings of $71.3 million for the 1HFY2022 ended June.

 

The half-year period&rsquo s earnings represented an increase of 3.5% over the earnings of $69.0 million in the same period the year before.

 

1HFY2022 earnings per share (EPS) stood at 5.38 cents on a fully diluted basis.

 

During the period, the group&rsquo s revenue fell 26.5% y-o-y to $115.3 million due to the decrease in revenues from the sale of properties and property financing.

 

In the 1HFY2022, revenue from the sale of properties plunged 74.0% y-o-y to $21.1 million, while revenue from property financing fell 28.1% y-o-y to $39.2 million.

 

The lower revenue from the sale of properties was mainly due to the first-time profit recognition of the Soho loft units in Plot F of the Millennium Waterfront project in 1HFY2021.

 

Revenue recognition in 1HFY2022 was from the sale of 40 Plot F Soho loft units and 10 commercial units of the Millennium Waterfront project compared to the 619 Plot F SOHO loft units, one commercial unit and seven car park lots recognised in 1HFY2021.

 

The lower revenue was offset by rental income from investment properties and revenue from hotel operations, which rose 7.6% y-o-y and 217.5% y-o-y to $6.3 million and $48.6 million respectively.

 

The higher rental income from investment properties was mainly due to the contribution from the East Sun Entities which were consolidated by the group with effect from March 31, 2021.

 

The higher revenue from hotel operations came from the 11 Bilderberg hotels in the Netherlands, which was consolidated by the group with effect from May 2. The rest of the European hotels saw revenue surge 281% y-o-y, underpinned by the strong demand arising from the removal of the Covid-19 restrictions.

 

Finally, revenue from property financing fell mainly due to the lower average PRC PF loan book for 1HFY2022 of RMB2.14 billion ($451.3 million).

 

In the 1HFY2022, gross profit fell by 7.0% y-o-y to $66.2 million on the back of the lower revenue.

 

As at June 30, cash and cash equivalents stood at $651.9 million.

 

During the period, the group declared an interim dividend of 1.1 cents, payable on Sept 1.

 

Between Mar 17 and 18, First Sponsor Group First Sponsor : ADN 0% non-executive chairman Calvin Ho Han Leong acquired 599,000 shares of the company at an average price of S$1.37 per share. With a consideration of S$819,338 this increased his total interest in the group from 46.37 per cent to 46.44 per cent. This followed on from the acquisition of 63,900 shares at an average price of S$1.34 per share on Feb 24.

 

Ho was appointed the non-executive chairman of the company in April 2015. Prior to this, he had served as the non-executive vice-chairman of the company since Oct 1, 2007. He has also accumulated extensive experience during his tenure as CEO of Singapore-incorporated Tai Tak Estates.

 

Back on Feb 11, First Sponsor Group CEO Neo Teck Pheng highlighted that FY21 (ended Dec 31) saw the group set a new record annual pre-tax profit, since its inception, of S$202.6 million and a net profit of S$121.5 million for FY21, representing 17.7 per cent growth from FY20.

 

This was underpinned largely by the profit contribution from The Pinnacle project and a record annual average China property financing loan book. Mr Neo also added that the group is backed by a strong balance sheet, substantial unutilised committed credit facilities and potential equity infusion from the exercise of outstanding warrants.

PROPERTY developer First Sponsor Group reported S$121 million in net profit for the full year ended Dec 31, 2021, up 17.7 per cent from S$103 million in the year-ago period, the company said in a bourse filing after market hours on Friday (Feb 11).

 

The company, which is engaged primarily in business in China, announced a second interim cash dividend of 2.35 Singapore cents for FY2021, in lieu of a final dividend. This brings the total dividend declared for the year to 3.45 Singapore cents.

 

Revenue for the year was up 189 per cent to S$589 million, led by strong growth from sale of properties.

 

Revenue from this particular segment increased by 628 per cent or S$358 million to S$415 million, due mainly to the first handover of 6 residential apartment blocks of The Pinnacle in Dongguan, as well as the handover of loft units in the Millennium Waterfront project in Chengdu.

 

Revenue from hotel operations climbed 27.8 per cent to S$42 million, mainly due to a pick-up in performance of hotels in China and Europe as Covid-19-related travel restrictions eased. Rental income from investment properties went up 47.1 per cent to S$13 million. Revenue from property financing was up 13.1 per cent to S$119 million.

 

Administrative expenses went up 25.8 per cent to S$36.1 million mainly due to higher staff costs, while selling expenses were up 74.2 per cent to S$10.2 million.

 

The group achieved a lower overall gross profit margin of 41 per cent in FY2021, compared to 84.3 per cent in FY2020. It attributed this to a change in sales mix, with the lower-yielding property development business contributing a larger share of total revenue in the current year.

 

Earnings per share for the full year stood at 13.26 Singapore cents, compared with 11.97 Singapore cents in FY2020.

 

Group chief executive officer Neo Teck Pheng said First Sponsor' s property development business segment will remain active in the coming year, with the group expecting to launch new pre-sales for 5 projects in China.

 

The property financing business in China achieved a record full-year average loan book of 2.7 billion yuan (S$571 million) for FY2021. With an improving credit liquidity situation in the country, however, the challenge for the group would be to maintain a similar average loan balance in FY2022, Neo said.

 

In the Netherlands, the group has entered into agreements with main contractors for the Dreeftoren Amsterdam redevelopment project, for which construction is expected to begin in the first quarter of 2022.

 

The group remains optimistic about the recovery of Europe' s hospitality business in the mid to long term, Neo said. He added that it is discussing with business partners to increase its current 31.4 per cent equity interest in the Dutch QBN hotel portfolio.