Boustead Projects was spin-off from Boustead Singapore in 2015 and is in the business of design, build and development of industrial facilities & parks for sale or lease.
Businesses are segmented into:
Design & Build
Business - FY-March
The strong uptick in revenue in FY20 was due to:
Design & Build order backlog carried over from FY19
Higher Real Estate revenue from commencement of new leases
Improved management fee from Boustead Development Partnership
In FY21, Covid-19 pandemic impacted Design & Build activities hitting margin especially hard due to new rules to manage the spread of virus, supply-chain disruption, higher labour & material cost.
Real Estate portfolio remained healthy, growing 7%. Divestment of 14 leasehold properties to Boustead Industrial Fund enable the sector to record a gain of $135M.
Operating profit recorded a loss of $2M. Net profit of $132M was due to one-off BIF mentioned earlier and $11M gain from associates.
Further to formation of BIF, Boustead Projects intend to form a KTG & Boustead Industrial Logistics Fund (KBILF) to acquire seed assets amounting to $141M.
Singapore remained BP largest market. Malaysia notable increase in business was for a high-tech manufacturing & office facility for a Fortune 500 company in Penang.
Real Estate and Investment will provide Boustead Projects a steady income source in a cyclical industry. Free cashflow generated will provide the company a competitive advantage to acquire valuable assets at an opportune time or to tide through difficult industry cycles.
With Singapore gradual reopening of borders, outlook for the firm should improve at a measured pace as well.