Ho Bee Land credits 'strategic' portfolio for cushion against Covid-19 impact

Published Tue, May 19, 2020 · 10:06 AM

MAINBOARD-LISTED developer Ho Bee Land said on Tuesday that the firm is "not as badly affected" by the virus outbreak on the back of its strategic and resilient portfolio.

This was in response to shareholders' questions that were submitted electronically prior to its annual general meeting held on Tuesday and submitted to the Singapore Exchange (SGX) after trading hours.

In a regulatory update, the company said: "After the last Global Financial Crisis, we strategically built up a sizeable investment portfolio locally and overseas. The objective was to provide us with a resilient recurrent income base to help us ride through another unforeseen crisis."

It added that its investment portfolio is concentrated on the office sector, which is more resilient than the hospitality and retail sectors. Having said that, the firm has had to absorb some loss in revenue due to rental rebates offered to F&B (food and beverage) tenants during the circuit breaker period and amid lockdowns.

While the time taken for the recovery of economies is uncertain, Ho Bee Land said that its offices in Singapore and London, which are fully leased, and its recurrent income over the next two years will mitigate the impact of the Covid-19 crisis.

Its strong recurrent income also puts the firm in a better position "to seize compelling investment and development opportunities that typically surface during a crisis," it added.