Selangor Properties slips into the red on forex losses

KUALA LUMPUR (March 25): Selangor Properties Bhd started off its current financial year ending Oct 31, 2016 (FY16) on the wrong foot, reporting a net loss of RM16.11 million for the first quarter as a stronger ringgit wreaked losses in its investment holding division.

In comparison, it recorded a net profit of RM58.09 million in the previous corresponding period.

Revenue for the quarter under review, however, rose 24.3% to RM30.24 million.

“For the quarter under review, [investment holding division] recorded a loss of RM22 million as compared to RM53.7 million profit in the preceding year’s corresponding period,” said Selangor Properties in a filing with Bursa Malaysia.

“The loss was mainly due to foreign exchange losses of RM24.9 million as the ringgit strengthened against the US dollar, Singapore dollar and Australian dollar in the current quarter, whereas a RM57.4 million gain recognised in the preceding year’s corresponding period was mainly attributable to foreign exchange gains.”

Selangor Properties also had no meaningful contribution from its property development business in the quarter. The company said it had suspended the sale of properties of its Bukit Permata project and will relaunch it only in early 2017.

The group said that its investments in Menara Milenium in Damansara Heights and Claremont Shopping Centre in Perth, Australia continued to enjoy high occupancy rates.

Selangor Properties will also launch a high-end condominium in the second half of this year in Damansara Heights.

“The proposed development of the group’s land bank in Damansara Heights is in its initial planning stage, with considerations on designs which will provide integration and connectivity with the surrounding Mass Rapid Transit project,” Selangor Properties said.

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This article first appeared in The Edge Financial Daily, on March 25, 2016. Subscribe to The Edge Financial Daily here.