TEE Land swings to fiscal 3Q net loss after selling three Peak units at steep discounts

Singapore two-dollar bills

TEE Land reported on Wednesday it swung to a fiscal third quarter net loss of S$1.03 million, from a year earlier net profit of S$1.17 million, as cost of sales surged mainly on the sale of three units at The Peak at steep discounts to clear unsold units.

Revenue for the quarter ended 28 February rose by 2.1 percent on-year to S$31.94 million, TEE Land said in a filing to SGX after the market close on Wednesday.

Cost of sales climbed 18.8 percent on-year in the quarter to S$28.75 million, mainly on the discounted The Peak units, and on variation orders and additional costs for the Third Avenue development, the filing said.

That resulted in the gross profit margin for the fiscal third quarter falling to 10 percent from 22.7 percent in the year-ago quarter, TEE Land said.

TEE Land did not declare a dividend for the quarter, compared with a 0.25 Singapore cent dividend in the year-ago period.

In its outlook, TEE Land pointed to increased global economic uncertainty as a headwind for the company.

“In Singapore, the operating environment for the residential market is expected to remain challenging with the latest cooling measures implemented in July 2018,” TEE Land said. ” The performance of the group’s overseas market is also expected to be affected by local political developments as well as foreign exchange fluctuations.”

It added that it would take a more cautious approach to acquiring new land sites and in making investments.

 

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