PETALING JAYA: Selangor Properties Bhd (SPB) swung into the red in the fourth quarter ended Oct 31, 2018 (Q4 2018) with a net loss of RM993,000 mainly due to higher fair value losses from investment properties in Malaysia and lower fair value gains from investment properties in Australia.
This was in contrast to a net profit of RM20.44 million a year ago.
The group posted a lower pre-tax profit of RM3.77 million due to increase in general administrative expenses arising mainly from provision of impairment on a development land and provision for impairment on equity investments in Malaysia, it said in its filing with Bursa Malaysia.
However, it said the unrealised foreign exchange gain in Q4’2018 was higher by RM29.3 million compared with Q4’2017.
Revenue for the quarter increased by 2.8% to RM46.5 million from RM45.2 million in the same period last year, mainly due to higher revenue contribution from property development in Malaysia, namely Aira Residence project.
For the full year, the group posted a net loss of RM2.1 million, compared with a net profit of RM92.6 million a year ago, while revenue grew 9.4% to RM153.28 million, from RM140.2 million previously.
On its prospects, SPB expects its operations in all business segments to remain stable for the next financial year. However, its overseas investments, held in foreign currencies, will continue to be affected by fluctuations in foreign exchange.
In a separate filing, Selangor Properties said it had undertaken a revaluation exercise on all its investment properties held by the group and its subsidiaries to comply with the accounting standards under the Malaysian Financial Reporting Standards 140 on investment property.
Following the revaluation exercise, the group said there is a revaluation deficit of RM19.1 million, which will result in a decrease of 5.6 sen in the net asset per share of the group.
The total value placed on the asset by the valuer is RM600.32 million and the valuation on the asset dated Oct 31, 2018 was conducted by VPC Alliance (KL) Sdn Bhd.
Earlier, SPB received a takeover offer from its largest shareholder Kayin Holding Sdn Bhd to take the company private. The offer price has been revised upwards by 5.3% to RM6 from RM5.70 per share.