Far East Orchard

Far East Orchard: 3Q13 net profit decimated 98% to $2.2m despite a 74% growth in sales to $29.9m. This was mainly attributable to the lower contribution from the hospitality division as the group no longer derives profits from the assets that were injected into Far East Hospitality Trust in Aug '12. This resulted in a 19% decline in gross profit, lack of other gains from asset swap transactions, increased administrative expenses (+66%) and lower share of profits from JVs (-44%). The top line benefitted from the progressive recognition of the euHabitat project, the sale of a medical unit in Novena Medical Center and new revenue contribution from the acquisition of a hospitality management business back in Aug '12. Going forward, the JV with Toga and Straits Trading had been completed, and are expected to contribute to the group's hospitality division. NAV lowered to $2.87 (-2%)