LONDON (Alliance News) - Macau Property Opportunities Fund (MPO) Limited reported an increase in profit for the full year, boosted by high demand for luxury properties in its markets.
The company, which develops and invests in property in Macau and China's Pearl River Delta, posted pretax profit of USD34.2 million for the period ended 30 June, up from USD6.0 million a year earlier. Operating profit increased significantly during the period to USD36.1 million from USD10.4 million last year.
Revenue also jumped to USD63.2 million from USD40.3 million in 2012, as rental income increased to USD4.2 million from USD3.1 million a year earlier.
The company attributed the increase to a strong performances across its portfolio, with all its assets contributing.
The Waterside, the fund's cornerstone property comprising a luxury residential tower for lease, ended the year well. Occupancy levels exceeded 90% and average net yields rose almost 10% over the fiscal year.
MPO's flagship retail project, Senado Square, obtained further key approvals from the Macau government, and construction should commence during 2014 once formal approval has been received, the company said.
The company's low-density luxury housing project, The Fountainside, and luxury private residence, The Green House, have also progressed well, with demand for these properties expected to be high, it said.
Average home prices in Macau continue to "reach new highs", with recent government data showing that half of the homes sold in the territory cost USD500,000 or more.
MPO said it expects current market conditions to persist for the foreseeable future and will lend further pricing support to The Fountainside and rental demand at The Waterside.
The portfolio value increased 28% during the period to USD453 million from USD353 million in 2012, while net asset value rose to USD355 million from USD306 million in 2012.
The fund's cash balance stood at USD14.8 million,of which USD4.9 million is pledged as collateral for the company's banking facilities.
The board did not recommend payment of a dividend for the period.
MPO shares were trading at 192.07 pence Monday, up 6.50 pence or 3.5%. 192.07 +3.57 (1.89%
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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Macau Property (MPO)