mr funny
13-05-10, 17:42
http://www.businesstimes.com.sg/sub/companies/story/0,4574,385550,00.html?
Published May 13, 2010
CDL Q1 net profit up 68% at $139m
All cylinders - real estate devt, rental properties, hotel operations - firing
By KALPANA RASHIWALA
IT WAS a case of all cylinders firing for City Developments Ltd (CDL) in the first quarter as it achieved a 67.6 per cent year-on-year boost in net earnings to $139.3 million and a 20.6 per cent rise in revenue to $750.5 million.
The group achieved higher revenue and pre-tax profits in all three business segments - property development, rental properties and hotel operations.
In the coming months, CDL is planning to release two more Singapore residential projects - a 157-unit condo on the former Concorde Residence site at Thomson Road and a 642-unit condo in Pasir Ris. The latter will be released in phases in the third quarter of this year.
CDL also said that it is considering reserving at least 100 units at The Residences at W Singapore Sentosa Cove for investment (to be leased out) or for bulk sales. Despite selling only about half of the 56 units released so far this year in the 228-unit project, CDL is optimistic about prospects for property values at Sentosa Cove.
In the first quarter ended March 31, 2010, the group booked profits from the following residential property development pro-jects: One Shenton, Clive-den at Grange, The Arte, Tribeca, Shelford Suites and Wilkie Studio. Profits were also recognised from joint venture projects, namely, The Oceanfront @ Sentosa Cove, which received Temporary Occupation Permit in March this year, and Livia at Pasir Ris.
CDL has not booked in profits from the 396-unit Hundred Trees, 85-unit Volari at Balmoral and 177-unit Cube 8, which are almost completely sold, as these projects are still at an early stage of construction. Likewise, no earnings have been recognised from the 329-unit JV project, The Gale, which is also substantially sold.
In the Dunearn Road area, showflats will be built shortly for the redevelopment of Copthorne Orchid Singapore - owned by the group's subsidiary Millennium & Copthorne Hotels - into a condominium. The hotel is expected to close in Q4 2010.
The group, which has clinched three private residential sites at state tenders in the past nine months - at Chestnut Avenue, Sengkang West Avenue and Upper Changi Road North - also gave its take on the Government Land Sales Programme.
'Offering more sites may help to level out the aggressiveness in tender prices, but it will not help to bring property prices down immediately as there is always a lag time between actual supply of land and the completion of the residential projects. The actual demand in terms of occupancy can only be ascertained on the projects' completion,' it said.
Giving an update on the South Beach project, the group said the consortium developing the project (in which CDL has a stake) has managed to achieve some degree of value-engineering to ensure that the project is made more efficient and cost effective. 'Formal planning approval for this development is expected this year and construction is expected to commence either end of this year or in early 2011,' it said.
CDL, which is also an office landlord, said 'there are signs that the office market rentals may have bottomed out'. The group had healthy occupancy of 93.5 per cent at end-April 2010.
As at March 31, 2010, the group's net gearing continued to be low at 38 per cent, with interest cover at 17.8 times. This is not counting any fair value gains on investment properties as the group has adopted the conservative policy of stating investment properties at cost less accumulated depreciation and impairment losses.
The group had cash and cash equivalents of about $947 million at end-March 2010. Earnings per share rose from 9.1 cents in Q1 2009, to 15.3 cents in Q1 2010. Net asset value per share rose to $6.71 at end-March 2010 from $6.57 at end-Dec 2009. The counter ended 10 cents higher yesterday at $10.86.
Pre-tax profit from property development rose 17.8 per cent year-on-year to $80.9 million in Q1 this year. Profit from rental properties increased about 91 per cent to $70.4 million due to higher rental income and a gain recognised on the sale of North Bridge Commercial Complex.
Earnings from hotel operations grew 73.4 per cent to $36.3 million on the back of improvement in revenue per available room as well as cost-control efforts.
'The group is expected to remain profitable over the next 12 months,' CDL said. The group is optimistic that sentiments in the property, commercial and hospitality sectors will continue to improve as Singapore becomes more visible on the global stage and reaches untapped business and leisure travellers.
Published May 13, 2010
CDL Q1 net profit up 68% at $139m
All cylinders - real estate devt, rental properties, hotel operations - firing
By KALPANA RASHIWALA
IT WAS a case of all cylinders firing for City Developments Ltd (CDL) in the first quarter as it achieved a 67.6 per cent year-on-year boost in net earnings to $139.3 million and a 20.6 per cent rise in revenue to $750.5 million.
The group achieved higher revenue and pre-tax profits in all three business segments - property development, rental properties and hotel operations.
In the coming months, CDL is planning to release two more Singapore residential projects - a 157-unit condo on the former Concorde Residence site at Thomson Road and a 642-unit condo in Pasir Ris. The latter will be released in phases in the third quarter of this year.
CDL also said that it is considering reserving at least 100 units at The Residences at W Singapore Sentosa Cove for investment (to be leased out) or for bulk sales. Despite selling only about half of the 56 units released so far this year in the 228-unit project, CDL is optimistic about prospects for property values at Sentosa Cove.
In the first quarter ended March 31, 2010, the group booked profits from the following residential property development pro-jects: One Shenton, Clive-den at Grange, The Arte, Tribeca, Shelford Suites and Wilkie Studio. Profits were also recognised from joint venture projects, namely, The Oceanfront @ Sentosa Cove, which received Temporary Occupation Permit in March this year, and Livia at Pasir Ris.
CDL has not booked in profits from the 396-unit Hundred Trees, 85-unit Volari at Balmoral and 177-unit Cube 8, which are almost completely sold, as these projects are still at an early stage of construction. Likewise, no earnings have been recognised from the 329-unit JV project, The Gale, which is also substantially sold.
In the Dunearn Road area, showflats will be built shortly for the redevelopment of Copthorne Orchid Singapore - owned by the group's subsidiary Millennium & Copthorne Hotels - into a condominium. The hotel is expected to close in Q4 2010.
The group, which has clinched three private residential sites at state tenders in the past nine months - at Chestnut Avenue, Sengkang West Avenue and Upper Changi Road North - also gave its take on the Government Land Sales Programme.
'Offering more sites may help to level out the aggressiveness in tender prices, but it will not help to bring property prices down immediately as there is always a lag time between actual supply of land and the completion of the residential projects. The actual demand in terms of occupancy can only be ascertained on the projects' completion,' it said.
Giving an update on the South Beach project, the group said the consortium developing the project (in which CDL has a stake) has managed to achieve some degree of value-engineering to ensure that the project is made more efficient and cost effective. 'Formal planning approval for this development is expected this year and construction is expected to commence either end of this year or in early 2011,' it said.
CDL, which is also an office landlord, said 'there are signs that the office market rentals may have bottomed out'. The group had healthy occupancy of 93.5 per cent at end-April 2010.
As at March 31, 2010, the group's net gearing continued to be low at 38 per cent, with interest cover at 17.8 times. This is not counting any fair value gains on investment properties as the group has adopted the conservative policy of stating investment properties at cost less accumulated depreciation and impairment losses.
The group had cash and cash equivalents of about $947 million at end-March 2010. Earnings per share rose from 9.1 cents in Q1 2009, to 15.3 cents in Q1 2010. Net asset value per share rose to $6.71 at end-March 2010 from $6.57 at end-Dec 2009. The counter ended 10 cents higher yesterday at $10.86.
Pre-tax profit from property development rose 17.8 per cent year-on-year to $80.9 million in Q1 this year. Profit from rental properties increased about 91 per cent to $70.4 million due to higher rental income and a gain recognised on the sale of North Bridge Commercial Complex.
Earnings from hotel operations grew 73.4 per cent to $36.3 million on the back of improvement in revenue per available room as well as cost-control efforts.
'The group is expected to remain profitable over the next 12 months,' CDL said. The group is optimistic that sentiments in the property, commercial and hospitality sectors will continue to improve as Singapore becomes more visible on the global stage and reaches untapped business and leisure travellers.