At one point, Oxley Holdings (SGX:5UX) generated a returns on equity (ROE) of 88%.
That means, for every dollar invested, Oxley returned shareholders S$0.88.
That’s heck a lot for a property developer.
Between 2011 and 2017, Oxley was a profit machine, growing networth by 1,045% — from S$131 million to S$1.5 billion. That’s impressive.
A company’s networth is its shareholders’ equity. Some call it the book value.
You see, in 2011, Oxley found its niche in building “shoebox” apartments.
Then, in 2014, Oxley produced its first billion dollar revenue. It completed 13 iconic projects including Devonshire Residences, Loft@Holland, Oxley Edge Floraville/Floraview/Floravista.
Oxley rode on a massive property upswing when smaller apartment units were a rage. It hit the peak of S$0.58 per share, twice.
Today, Oxley’s shares are down more than 63.7% since 2018.
Source: Yahoo! Finance
So what happened?
The problem with property stocks is its cyclical nature.
On one hand, developers are at the mercy of government property cooling measures. And the other, rising land prices.
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