Hong Leong Finance (HLF) net profit for Q1 increased 57% to S$25.9 million from the previous year as earnings per share increased to 23.22 Singapore cents from 14.83 Singapore cents in the same period last year. Interest on loans in Q1 increased 11.4 per cent to S$59.6 million from the previous year while hiring charges rose 16 per cent to S$13 million. Other interest income was up 4.7 per cent to S$7.7 million.

Net loan assets including hire purchase receivables (net of allowances) stood at S$10,432 million at the end of the period under review. This was an increase of 5.6% or S$555 million over the previous year’s base of S$9,977 million as at 31 December 2017, an increase of 9.7% or S$924 million over the figure of S$9,508 million as at 31 March 2017.

“Against the current economic backdrop, Hong Leong Finance recorded increased profits and continues to maintain adequate loss allowances in respect of its loan portfolio. The Group will continue to build up its growth momentum with a strong balance sheet and at the same time, maintain a strong focus on risks and compliance,” said HLF Chairman Mr Kwek Leng Beng.

CDL Hospitality Trusts

Inorganic contribution from properties such as the Pullman Hotel Munich in Germany (pictured) boosted the performance of CDL Hospitality Trusts.

CDL Hospitality Trusts (CDLHT) reported net profit income of S$37.8 million, an increase of 5.4% compared to 1Q 2017. Inorganic contribution from The Lowry Hotel in Manchester, United Kingdom (“UK”) and Pullman Hotel Munich in Germany boosted the portfolio’s performance. Despite a competitive landscape, the Singapore portfolio recorded an improved performance.

Net finance costs for 1Q 2018 was lower by S$4.7 million mainly due to savings from lower average funding costs and the absence of foreign exchange loss (which has no impact on the distribution of CDLHT). Overall, CDLHT recorded year-on-year growth of 7.9% in total distribution to Stapled Securityholders (after retention for working capital) for 1Q 2018 to S$26.1 million. Accordingly, DPS for 1Q 2018 was 2.17 cents, 7.4% higher than 1Q 2017.

Mr Vincent Yeo, Chief Executive Officer of CDLHT said, “We are pleased to report healthy growth in income for 1Q 2018. Our acquisitions in the past year have reinforced our diversification strategy and we have benefitted from a broader earnings base as different markets experience varying cycles. In addition, it is pleasing to note that our core market, Singapore, is showing improvement despite the strong supply growth in 2017. We will continue to focus on the long-term potential of our assets by seeking asset enhancement opportunities to strengthen their competitiveness.”

First Sponsor

First Sponsor, which acquired the Queens Bilderberg portfolio of Dutch heritage branded hotels such as the 94-room luxury Bilderberg Hotel De Keizerskroon, reported Q1 net profit increase of 20.3% to S$17.1 million.

First Sponsor Group reported Q1 net profit increased 20.3% to S$17.1 million from S$14.2 million a year ago, as higher income from property financing and property holding outweighed lower revenue from property sales. Earnings per share for the quarter came in at 2.90 Singapore cents from 2.41 Singapore cents for the year-ago period.

The property developer, with a focus on the Netherlands and China, said revenue for the three months ended March 31, 2018 fell 42.6 per cent to S$47.8 million from S$83.3 million, due mainly to the a S$60.4 million drop in revenue from the sale of properties. This was offset by the increase in revenue from property financing, hotel operations and rental income from investment properties of S$18.2 million, S$6.1 million and S$0.6 million respectively.

“The strong showing of the financial results for 1Q2018 was underpinned by income from the property financing and property holding business segments. The Group’s investment activities in the Netherlands in the past years and more recently in Germany have translated into a significant increase in profit contributions from both business segments,” said Chief Executive Officer Mr Neo Teck Pheng.