Roxy-Pacific’s net profit plunged 23% in Q3 on back of sluggish residential sales

Average room rates also took a beating.

Roxy-Pacific Holdings’ net profit plunged 23% year-on-year to $12.4m in the third quarter. Its margins were dragged by lacklustre contributions from its property development segment.

According to OCBC, contributions from this segment fell $9.7m YoY as recognition from Spottiswoode 18 slowed and Treescape obtained TOP status over the quarter.

Average occupancy rate at the group’s key hotel asset Grand Mercure Roxy Hotel climbed to 94.4% in 3Q14 from 90.8% in 3Q13, but average room rates dipped 3.8% YoY to S$184.5.

“While the group’s core development business will likely face continued headwinds from an uncertain domestic residential outlook, we like management’s strategy of growing recurring income and diversifying its portfolio geographically,” stated OCBC.