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LONDON (Alliance News) - Macau Property Opportunities Fund (MPO) Ltd reported an increase in profit and net asset value for the first half, as the value of its portfolio increased significantly.
The company, which develops and invests in property in Macau and China's Pearl River Delta, posted pretax profit of USD73.3 million for the six months ended June 30, up from USD34.2 million a year earlier, as revenue more than doubled to USD130.6 million from USD63.3 million.
MPO was boosted by a USD83.6 million net gain from fair value adjustments on investment property, compared with USD48.5 million a year earlier, in addition to a USD17.3 million gain on the disposal of investment property, compared with just USD3.6 million in the previous year.
The company said its adjusted net asset value per share rose 31% to USD4.89 from USD3.74 a year earlier. The adjusted figure incorporates deferred tax provisions.
In turn, MPO's net asset value rose to USD222.9 million from USD214.8 million a year earlier.
Macau Property Opportunities said the bulk of the increase can be attributed to the "solid performance" across its portfolio. The portfolio value rose 38% year-on-year to USD535.8 million from USD452.9 million, boosted by the shortage of housing supply in Macau.
At an operating level, the company said occupancy at its luxury residential property The Waterside declined to about 80% on the back of a "rogue junket operator's disappearance and our drive for higher rental growth". However, the company said it is not "overly concerned" by this.
"Our overriding focus remains on increasing rental values; some slippage is to be expected as the market adjusts to new, higher rental levels," MPO said.
On the other hand, at the company's low-density luxury residential development The Fountainside, sales are progressing, albeit slower than expected, as prevailing property cooling measures impact transaction volumes across Macau.
Looking ahead, the group said its "strong financing capacity", along with the portfolio's high-quality assets, should further position it well for the future.
The stock was quoted down 1.1% at 226.80 pence Monday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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