reporter2
21-05-14, 12:02
http://www.straitstimes.com/archive/thursday/premium/money/story/cdl-sees-131-fall-net-profit-q1-20140515
CDL sees 13.1% fall in net profit for Q1
Drop mainly due to absence of gains made in same period last year
Published on May 15, 2014 1:14 AM
By Rachael Boon
PROPERTY giant City Developments (CDL) suffered a decline in first-quarter earnings, but the main reason was the absence of gains made in the same period last year.
Net profit fell 13.1 per cent to $119.7 million for the three months to March 31, while revenue dipped 5.4 per cent to $734.2 million year-on-year.
The one-off gains in the first quarter last year were from the disposal of strata units in Elite Industrial Building I, Elite Industrial Building II and Citimac Industrial Complex. If these gains were excluded, first-quarter net profit would have grown by 4 per cent.
The firm, whose executive chairman is Kwek Leng Beng, noted that it had adopted a revised financial reporting standard that became effective on Jan 1 this year.
The property development segment was the top contributor, which the firm said remained "relatively on a par with the corresponding period of last year, despite achieving lower revenue".
Profit from joint venture projects such as the 868-unit Bartley Ridge, the 396-unit The Inflora and the 508-unit Echelon contributed to the segment, along with higher contribution from Bartley Residences.
The rental properties segment saw much lower earnings owing to the absence of the gains from the first quarter last year.
The group's office portfolio recorded "healthy occupancy of about 95.8 per cent", compared with the national average of 90 per cent, CDL said.
The South Beach mixed development is progressing in construction, and the firm expects the 654-room South Beach Hotel to open next year.
Revenue contribution from subsidiary Millennium & Copthorne Hotels (M&C) rose when it was translated into the Singapore dollar, due to the strong pound sterling. CDL, which has a 59 per cent interest in M&C, reported a 5.9 per cent rise in revenue. However, the firm noted the pre-tax profit achieved was lower, as social and political uncertainties in parts of Asia affected trading profits.
M&C expects to complete the acquisition of the Novotel Times Square in New York next month and the Boscolo Palace Roma in Rome in the third quarter.
Earnings per share was 13.2 cents for the quarter down from 15.1 cents previously, while net asset value per share was $8.63 as at March 31, up from $8.50 as at Dec 31. CDL shares closed two cents higher at $10.08 yesterday.
[email protected]
CDL sees 13.1% fall in net profit for Q1
Drop mainly due to absence of gains made in same period last year
Published on May 15, 2014 1:14 AM
By Rachael Boon
PROPERTY giant City Developments (CDL) suffered a decline in first-quarter earnings, but the main reason was the absence of gains made in the same period last year.
Net profit fell 13.1 per cent to $119.7 million for the three months to March 31, while revenue dipped 5.4 per cent to $734.2 million year-on-year.
The one-off gains in the first quarter last year were from the disposal of strata units in Elite Industrial Building I, Elite Industrial Building II and Citimac Industrial Complex. If these gains were excluded, first-quarter net profit would have grown by 4 per cent.
The firm, whose executive chairman is Kwek Leng Beng, noted that it had adopted a revised financial reporting standard that became effective on Jan 1 this year.
The property development segment was the top contributor, which the firm said remained "relatively on a par with the corresponding period of last year, despite achieving lower revenue".
Profit from joint venture projects such as the 868-unit Bartley Ridge, the 396-unit The Inflora and the 508-unit Echelon contributed to the segment, along with higher contribution from Bartley Residences.
The rental properties segment saw much lower earnings owing to the absence of the gains from the first quarter last year.
The group's office portfolio recorded "healthy occupancy of about 95.8 per cent", compared with the national average of 90 per cent, CDL said.
The South Beach mixed development is progressing in construction, and the firm expects the 654-room South Beach Hotel to open next year.
Revenue contribution from subsidiary Millennium & Copthorne Hotels (M&C) rose when it was translated into the Singapore dollar, due to the strong pound sterling. CDL, which has a 59 per cent interest in M&C, reported a 5.9 per cent rise in revenue. However, the firm noted the pre-tax profit achieved was lower, as social and political uncertainties in parts of Asia affected trading profits.
M&C expects to complete the acquisition of the Novotel Times Square in New York next month and the Boscolo Palace Roma in Rome in the third quarter.
Earnings per share was 13.2 cents for the quarter down from 15.1 cents previously, while net asset value per share was $8.63 as at March 31, up from $8.50 as at Dec 31. CDL shares closed two cents higher at $10.08 yesterday.
[email protected]