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The hotel segment reported lower revenue mainly due to lower exchange rates used for translation. For the nine months' results, the Australian dollar and New Zealand dollar were translated at an average rate of S$1.28 (Dec 2011: S$1.3080) and S$1.0047 (Dec 2011: S$1.0095) respectively.
The property development segment reported lower revenue due to completed sales of 11 apartments in current period compared to completed sales of 126 units in the previous corresponding period.
Decreased contribution from the Group's interior decoration companies has attributed to lower revenue by the trading segment.
The hotel owning and management segment recorded a decrease in profit reflecting the weak performance from our two Adelaide hotels.
The property development segment reported lower profit due to completed sales of 11 apartments in the current period compared to completed sales of 126 units in previous corresponding period.
The Australian dollar and the Australian economy continues to be stable. We expect the Hotel segment will continue to perform satisfactorily for the next twelve months as more than 70% of our hospitality revenue is derived from a diversified clientele base within Australia. Further, little new supply of hotels are added to the market inventory.
The Property Investment segment will continue to perform, underpinned by the fixed lease income over A$10 million per annum from Dynons Plaza, Perth.
The lowering of the Australian interest rates will enhance the market value of our properties in Australia.
The Group expects to continue to recognise profits from the completed sales of The Stamford Residences and Reynell Terraces.