SGX-listed Ho Bee Land Limited (SG:H13) is bracing to report a net loss for 2023, reflecting an unfavourable shift from the earnings of S$165.9 million reported in 2022. The real-estate company expects to report a higher loss compared to a S$156.3 million loss reported for the first half of 2023.
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Ho Bee Land is scheduled to release its results for the second half and the full fiscal year 2023 on February 26, 2024.
Ho Bee Land operates in the property sector, focused on property investment and property development.
Navigating the Challenges
Ho Bee Land’s bottom line in 2023 was mainly impacted by unrealized non-cash fair-value losses in its investment properties in London due to higher capitalization rates.
The company registered a S$208.3 million fair value loss on investment properties in London for the first half of 2023, contrasting with a net fair value gain of $16.0 million in the same period of 2022. It stated that the capitalization rates for London properties increased to a range of 4.7% to 8.5% as of June 30, 2023, compared to rates ranging from 4.2% to 7.7% that were applied as of December 31, 2022.
Higher interest rates also weighed on Ho Bee Land’s full-year results. Finance costs increased to S$76.3 million in the first half, compared to S$33.2 million during the corresponding period of the previous year.
Looking ahead, the company anticipates that challenges like rising interest rates and a decline in portfolio valuations will persist. However, the company’s diversified investment and development portfolio is expected to serve as a resilience factor against these headwinds.
The Ho Bee Land share price was trading down by 1.13% as of writing. The stock has declined around 22% over the past year.
