Ho Bee Land

Ho Bee Land: 3Q14 net profit jumped 83.7% y/y to $13.5m, while revenue increased 64.8% to $26.8m on the back of rental income from office buildings, The Metropolis in Singapore, Rose Court and 1 St Martin’s Le Grand in London. There was nil development sales in the quarter. There was also a writeback of $7.6m accruals upon finalization of construction cost for development properties. Net gearing increased from 0.15x to 0.35x. Newly acquired 60 St Martin’s Lane in Oct’14 is expected to buoy recurring earnings. The property is in the heart of Covent Gardens, London, a famous retail, entertainment and business district. The building comprises 6-floors of Grade A offices and hosts retail and restaurant outlets in the ground and basement floors, providing an extensive frontage to St Martin’s Lane. Ho Bee expects rent reversions for this asset to be attractive during the 3Q16 rent review. BVPS of $3.44 translates to 0.58x P/B