SLB Development reported on Friday that it swung to a net loss of S$3.24 million for its fiscal third quarter from a net profit of S$2.13 million in the year-ago period as revenue declined as a key project neared completion.
Revenue for the quarter ended 28 February tumbled 76.72 percent on-year to S$7.66 million from S$32.92 million in the year-ago period, SLB Development said in a filing to SGX on Friday.
“The decrease in revenue was mainly due to lower revenue contribution from our industrial property development project, T-Space @ Tampines in 3Q2019 as the project was substantially completed in June 2018,” SLB Development said.
The share of results of joint ventures and associates swung to a loss of S$4.65 million in the quarter from a year-ago profit of S$600,000, mainly on changes to borrowing-cost accounting for Affinity @ Serangoon and Riverfront Residences, the filing said.
Accounting changes now require borrowing costs related to development properties ready for intended sale to be expenses when occurred, rather than capitalized as they were previously.
SLB Development issued a cautious outlook.
“With the various property cooling measures implemented, the group expects the residential property market to remain challenging,” it said.
“The group will continue to monitor the property market closely and take appropriate action when necessary. The group is cautious when seeking opportunities to replenish its land bank and will continue to explore business opportunities in the region through acquisition, joint venture and/or strategic alliances that will complement its property development business.”