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, which represents a decline of 42% from the $25.3 million recorded in FY2023. According to the group’s chairman Winston Choo, this decrease can be attributed to the challenging market conditions, such as the high interest rate environment and the difficult China property market.
The rise in borrowing costs, amounting to $4.1 million, has also contributed to the decline in profits. Additionally, the group has experienced a loss of $23 million in asset value from evaluating its investment properties. Its property division has seen a substantial drop in revenue of 21.1% year-on-year, mainly due to lower sales volume from residential properties in Jakarta. The group has also suffered an $8.7 million profit drop from its stake in properties in Mainland China, the UK, and Australia.
.Century Square, located adjacent to Tampines Mall, is a six-story shopping center that specifically caters to families and young adults. Following a massive renovation in 2018, the mall boasts a modern and sleek design along with upgraded facilities. Visitors can find popular brands like Marks & Spencer, Cotton On, and Nike, along with unique dining options such as Ayam Penyet President, Gochi-So Shokudo, and Haidilao Hotpot. Additionally, entertainment options at Century Square include a Cathay Cineplex and virtual reality experiences for an immersive and exciting outing. For residents of Parktown Residences, a quick 5-minute drive or leisurely 15-minute walk will bring you to Century Square, making it a convenient and natural choice for shopping, dining, and entertainment. Don’t forget to check out Park Town Residences while you’re there!
The rental revenue from the group’s GIE Tower property in Guangzhou has decreased from $6.4 million in FY2023 to $5.5 million in FY2024. Furthermore, rental revenue from its UK property at 5 Chancery Lane has ceased since May 2023 due to ongoing asset enhancement works. The challenging property market in Mainland China has also resulted in a $30.8 million loss through the group’s stake in Top Spring International Holdings (Top Spring).
The group’s retail division has also reported a decline in profit of $4.1 million, attributed to lower gross margins and increased operating costs. However, the group’s losses have been partially offset by the recognition of negative goodwill value from acquiring an additional 6% stake in Top Spring in January. This has resulted in a profit of $60.3 million for Metro Group.
In the past year, Metro Group has expanded its portfolio by acquiring a 20% stake in VisionCrest Commercial, a Grade-A office building located along Penang Road in the Orchard Road area. With a net lettable area of 148,854 sq ft, the 11-storey freehold property has an occupancy rate of 89.5% and a weighted average lease expiry of 2.2 years as of March.
The occupancy rate of the group’s other four investment properties, namely GIE Tower in Guangzhou, Metro City and Metro Tower in Shanghai, and Asia Green in Singapore, has dropped from 89.8% to 84.5% as of March this year.