For the group’s property development division, the AIRA Residence(pic of model), sales and construction are on-going and the project was expected to be completed early 2021 and revenue would be recognised progressively over the period

PETALING JAYA: Selangor Properties Bhd (SelProp) saw its net profit fall 64.4% to RM20.4mil for the fourth quarter of its financial year (FY) ended Oct 31, 2017, from RM57.4mil in the corresponding quarter last year.

The property development company’s lower earnings were attributable to fair value loss for its investment properties and foreign exchange loss from its overseas investments.

During the quarter in review, SelProp’s revenue rose 28.7% to RM45.2mil from RM35.1mil in the previous corresponding period, and its earnings per share (EPS) fell to 5.95 sen from 16.70 sen.

For the full year, SelProp’s net profit rose 37.4% to RM92.6mil from RM67.4mil in FY2016, and its EPS rose to 26.95 sen from 19.60 sen previously. The group’s revenue rose 15.9% to RM140.2mil in FY2017 from RM120.9mil in FY2016.

“However, in view of the group’s overseas investments, the exposure to foreign currency exchange will continue to affect the group’s profitability,” it said.

SelProp noted that the local property sector was experiencing an oversupply situation in all its sub-sectors for a considerable period with no foreseeable improvement in the short term.

“For the Klang Valley, the current oversupply of commercial and office space is not expected to improve in the near future.

“Having said that, the group’s property investment division in Malaysia is experiencing a slowdown while in Australia, it (has) stabilised,” it said.

For the group’s property development division, the AIRA Residence, sales and construction are on-going and the project was expected to be completed early 2021 and revenue would be recognised progressively over the period. Subject to market conditions, the Bukit Permata project was expected to be relaunched in the first half of 2018.

“For the Wisma Damansara site, preliminary planning works are progressing; however, with the current market condition and the recent Government’s freeze on approvals for development of shopping complex, offices, serviced apartments and condominium priced above RM1mil each, this project has been put under review,” SelProp said.

Meanwhile, SelProp redesignated its managing director Wen Chiu Chi to be the group’s executive chairman yesterday.

Wen, 61, replaced his 95-year-old mother Puan Sri Chook Yew Chong Wen who had retired from the position.

Wen was appointed as a director of the company on April 20, 1979.

He held the position of an executive director from 1979 to 2000.

In the year 2000, he assumed the position of the managing director.