reporter2
15-11-12, 13:36
http://www.straitstimes.com/premium/money/story/city-developments-earnings-inch-third-quarter-20121115
City Developments' earnings inch up in third quarter
Published on Nov 15, 2012
By Magdalen Ng
PROPERTY giant City Developments Limited (CDL) yesterday reported a third-quarter net profit of $134.5 million, up 1.8 per cent from the same period a year earlier.
Revenue for the quarter ended Sept 30 rose 3.4 per cent to $832.9 million.
However, the cost of sales grew a hefty 26.9 per cent to $454.6 million.
Other operating income jumped to $44.3 million, as gains from the disposal of certain strata units in Citimac Industrial Complex, Elite Industrial Building II, GB Building and Pantech Business Hub were recognised.
The property development segment was again the lead contributor to Singapore's second largest developer. Revenue from the segment was up 8.4 per cent at $348.8 million, but pre-tax profit slid 41 per cent to $76.5 million.
Despite the increased revenue for the quarter, pre-tax profits declined, mainly because last year profits were recognised from the sale of land in Kuala Lumpur.
The rise in revenue was attributed to maiden contributions from The Glyndebourne, Buckley Classique and H2O Residences.
This quarter, CDL's two executive condominium projects, The Rainforest and Blossom Residences, were fully sold, but no profits can be realised under new accounting rules.
In a statement filed with the Singapore Exchange, CDL also said its hotel operations delivered a "satisfactory performance" in the quarter despite challenging trading conditions and global economic uncertainty.
Profit contribution from hotel operations declined 20 per cent to $55.7 million, partly due to pre-operating expenses incurred by W Singapore Sentosa Cove Hotel, which officially opened last month.
However, the decreases were mitigated due to an impairment loss recorded on a hotel in the United States in the same quarter last year.
CDL noted that while the outlook for the property market in the medium to long term is positive, there could be some oversupply in 2014 and 2015, with more residential units being completed.
"This fear will be unwarranted if the world economy turns around by that time and a majority of the completed units are owner-occupied.
"The group hopes that the property cooling measures that have been imposed will be lifted in due course," it said.
Earnings per share was 14.8 cents, up from 14.5 cents a year ago, and net asset value per share increased to $7.77 from $7.51 as at Dec 31.
CDL shares fell 19 cents to $11.33 yesterday.
[email protected]
City Developments' earnings inch up in third quarter
Published on Nov 15, 2012
By Magdalen Ng
PROPERTY giant City Developments Limited (CDL) yesterday reported a third-quarter net profit of $134.5 million, up 1.8 per cent from the same period a year earlier.
Revenue for the quarter ended Sept 30 rose 3.4 per cent to $832.9 million.
However, the cost of sales grew a hefty 26.9 per cent to $454.6 million.
Other operating income jumped to $44.3 million, as gains from the disposal of certain strata units in Citimac Industrial Complex, Elite Industrial Building II, GB Building and Pantech Business Hub were recognised.
The property development segment was again the lead contributor to Singapore's second largest developer. Revenue from the segment was up 8.4 per cent at $348.8 million, but pre-tax profit slid 41 per cent to $76.5 million.
Despite the increased revenue for the quarter, pre-tax profits declined, mainly because last year profits were recognised from the sale of land in Kuala Lumpur.
The rise in revenue was attributed to maiden contributions from The Glyndebourne, Buckley Classique and H2O Residences.
This quarter, CDL's two executive condominium projects, The Rainforest and Blossom Residences, were fully sold, but no profits can be realised under new accounting rules.
In a statement filed with the Singapore Exchange, CDL also said its hotel operations delivered a "satisfactory performance" in the quarter despite challenging trading conditions and global economic uncertainty.
Profit contribution from hotel operations declined 20 per cent to $55.7 million, partly due to pre-operating expenses incurred by W Singapore Sentosa Cove Hotel, which officially opened last month.
However, the decreases were mitigated due to an impairment loss recorded on a hotel in the United States in the same quarter last year.
CDL noted that while the outlook for the property market in the medium to long term is positive, there could be some oversupply in 2014 and 2015, with more residential units being completed.
"This fear will be unwarranted if the world economy turns around by that time and a majority of the completed units are owner-occupied.
"The group hopes that the property cooling measures that have been imposed will be lifted in due course," it said.
Earnings per share was 14.8 cents, up from 14.5 cents a year ago, and net asset value per share increased to $7.77 from $7.51 as at Dec 31.
CDL shares fell 19 cents to $11.33 yesterday.
[email protected]