Boost from strong residential sales, property investment and fund mgt units
KEPPEL Land yesterday reported a 75 per cent climb in Q1 2010 net profit to $64.7 million – from $36.9 million a year ago – on the back of robust residential sales and better contributions from its property investment and fund management units.
Revenue for the three months ended March 31, 2010, was $158.8 million, up 9 per cent from $145.7 million for Q1 2009, as the developer recognised progressive revenue contributions from its residential projects in Singapore.
Net profit from the property trading division rose 54 per cent year-on-year to $48.7 million. Contributions came mainly from Reflections and Caribbean at Keppel Bay, Marina Bay Suites and Marina Bay Residences in Singapore, as well as The Arcadia and Villa Riviera in China.
The developer plans to launch another 100-200 units at Reflections at Keppel Bay in phases during the year to capitalise on demand for premium residences with close proximity to the Resorts World Sentosa integrated resort, it said. Marina Bay Suites will also be officially launched to capitalise on the opening of Marina Bay Sands.
Other business divisions also reported better year-on-year earnings. Net profit for the property investment segment rose 29 per cent to $12.4 million as the Singapore office market recovered somewhat. Fund management profit also climbed, by 61 per cent to $7.4 million, on higher fee income from office trust K-Reit Asia’s manager as well as Alpha Investment Partners.
Earnings per share for the quarter rose 25 per cent to 4.5 cents from a restated 3.6 cents a year ago to take into account a rights issue.
The company’s net debt-to-equity ratio climbed slightly to 0.24 at end-March 2010, from 0.22 at end-December 2009, mainly due to the use of its rights proceeds for capital injection into Keppel Tianjin Eco-City and a residential project in Hunnan District in Shenyang, as well as for funding its Marina Bay projects.
Keppel Land shares lost seven cents, or 1.9 per cent, to close at $3.66 yesterday.
Source: Business Times, 20 Apr 2010