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14-11-13, 11:12
http://www.straitstimes.com/premium/money/story/cdl-development-arms-good-showing-limits-q3-profit-slide-104-20131113
CDL development arm's good showing limits Q3 profit slide to 10.4%
Published on Nov 13, 2013
By Rachael Boon
SOLID results from the development segment helped City Developments (CDL) limit a slide in earnings in the third quarter.
Net profit fell 10.4 per cent to $120.6 million for the three months to Sept 30 while revenue dipped 1.2 per cent to $822.7 million.
The property development division surpassed contributions from hotel operations and rental properties.
CDL said in a statement yesterday that profits were not realised from projects in early stages of construction in the quarter, or where building has not begun.
These include the 868-unit joint venture Bartley Ridge in Mount Vernon Road, D'Nest in Pasir Ris with 912 flats and the 616-unit Jewel @ Buangkok condominium in Buangkok Drive.
No profits were booked for two fully sold executive condominiums - The Rainforest and Blossom Residences - and the new 380-unit Lush Acres executive condo, which has almost sold out. But profits were booked in from pre-sold projects like 368 Thomson and Buckley Classique.
A stable demand for office space contributed. Rents rose 0.8 per cent from the second quarter and the group's office portfolio recorded 96.4 per cent occupancy.
CDL, which has a 59 per cent interest in its subsidiary Millennium & Copthorne Hotels, said revenue was kept steady by adapting the sales approach "to reflect prevailing trading conditions".
Total revenue at Millennium & Copthorne rose 3.1 per cent to £197.1 million (S$246 million) from a year earlier. CDL said: "The improvement was attributed to... revenue improvement from New York hotels, improved trading in regional US despite partial closure of Millennium Hotel St Louis, return to rooms inventory of recently refurbished hotels, and sale of land in New Zealand."
Last month, CDL launched The Venue Residences and Shoppes in Tai Thong Crescent and The Inflora, a 396-unit condominium in the Changi-Pasir Ris area. CDL said both are seeing good response.
While "the impact of the accumulated property cooling measures is beginning to show its true colours and bite", CDL said it expects to perform profitably for the year.
Earnings per share was 13.3 cents, down from 14.8 cents a year ago, while net asset value per share was $8.36 as at Sept 30, from $8.03 as at Dec 31 last year.
CDL shares closed up one cent at $10.08 yesterday.
[email protected]
CDL development arm's good showing limits Q3 profit slide to 10.4%
Published on Nov 13, 2013
By Rachael Boon
SOLID results from the development segment helped City Developments (CDL) limit a slide in earnings in the third quarter.
Net profit fell 10.4 per cent to $120.6 million for the three months to Sept 30 while revenue dipped 1.2 per cent to $822.7 million.
The property development division surpassed contributions from hotel operations and rental properties.
CDL said in a statement yesterday that profits were not realised from projects in early stages of construction in the quarter, or where building has not begun.
These include the 868-unit joint venture Bartley Ridge in Mount Vernon Road, D'Nest in Pasir Ris with 912 flats and the 616-unit Jewel @ Buangkok condominium in Buangkok Drive.
No profits were booked for two fully sold executive condominiums - The Rainforest and Blossom Residences - and the new 380-unit Lush Acres executive condo, which has almost sold out. But profits were booked in from pre-sold projects like 368 Thomson and Buckley Classique.
A stable demand for office space contributed. Rents rose 0.8 per cent from the second quarter and the group's office portfolio recorded 96.4 per cent occupancy.
CDL, which has a 59 per cent interest in its subsidiary Millennium & Copthorne Hotels, said revenue was kept steady by adapting the sales approach "to reflect prevailing trading conditions".
Total revenue at Millennium & Copthorne rose 3.1 per cent to £197.1 million (S$246 million) from a year earlier. CDL said: "The improvement was attributed to... revenue improvement from New York hotels, improved trading in regional US despite partial closure of Millennium Hotel St Louis, return to rooms inventory of recently refurbished hotels, and sale of land in New Zealand."
Last month, CDL launched The Venue Residences and Shoppes in Tai Thong Crescent and The Inflora, a 396-unit condominium in the Changi-Pasir Ris area. CDL said both are seeing good response.
While "the impact of the accumulated property cooling measures is beginning to show its true colours and bite", CDL said it expects to perform profitably for the year.
Earnings per share was 13.3 cents, down from 14.8 cents a year ago, while net asset value per share was $8.36 as at Sept 30, from $8.03 as at Dec 31 last year.
CDL shares closed up one cent at $10.08 yesterday.
[email protected]