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In the wake of revaluation gains from their capital properties, Hong Fok Corp reported profits of $220.1 million in FY2022, which is an increase by 466% over FY2021.
The same period’s revenue was up 70% up to $153.9 million, with higher contribution from its hospitality business in addition.
Particularly, the company incurred the revaluation gain that totaled $197.3 million, as opposed to the gain of $35.7 million recorded in FY2021. The majority of the gains came from the appraisal of The Concourse and retail units of Concourse Skyline. According to an appraisal notice for the real estate assets of Hong Fok Corp with the Singapore Exchange (SGX) on 1 March the property was valued at $1.613 billion at the time of December 31 2022. This is a 204 million increase over its value at the end of December 2021, which was $1.408 billion.
Hong Fok plans to pay one cent dividend the same amount as the one the company paid in FY2021.
The company is optimistic about its outlookfor the future, as the tourism industry gaining momentum and thereby enhancing the hospitality segment.
The occupancy rate of additional investment properties is likely to remain steady.
Additionally, Hong Fok expects to continue to earn income from the sales of the residential units at Concourse Skyline, although it warns of an “adverse” impact on the higher-value residence property selling in Singapore due to cooling measures.