Hotel Properties limited (HPL) reported 2Q14 PATMI of S$7.0m, down 81% YoY, mostly due to the absence of contributions from the Tomlinson Heights condominium, which achieved TOP over in 1Q14, and lower share of results from associates and JV, which decreased S$14.9m to S$6.2m as the Interlace achieved TOP in Sep-13.

The figures from the hotels and resorts division remained stable, and reported a stable contribution versus 2Q13. We judge these figures to be mostly within expectations, and YTD PATMI now makes up 41% of our full year forecast. In terms of the top line, 2Q14 revenue dipped 22% to S$122.0m, again due to the impact from Tomlinson Height’s TOP earlier this year. Maintain BUY with an unchanged fair value estimate of S$5.32.

Source: OCBC Research - 8 Aug 2014