Selangor Prop sees 23% decline in 2Q net profit

By TMR

Selangor Properties Bhd’s (SPB) net profit saw a 23% year-on-year (YoY) decline to RM6.63 million in its second quarter ended April 30, 2018 due to fair value loss for the group’s overseas investment.

In a filing exchange yesterday, the property developer noted a 35% YoY rise in turnover to RM38.72 million driven by its operations in Australia.

Despite the lower exchange rate against the Australian dollar, higher rental revenue and income distribution from land development projects helped to push the group’s earnings in Australia.

SPB expects its investment properties in Malaysia and Australia to maintain their present occupancy and rental rates given the constant fair values of the properties for the year.

It also does not foresee any major impact on the group’s financial performance with the change in the Goods and Services Tax and its substitution with the Sales and Services Tax.