Keppel Land Q4 profit up almost eight-fold

[mr funny]

http://www.businesstimes.com.sg/sub/...23203,00.html?

Published January 25, 2011

Keppel Land Q4 profit up almost eight-fold

Gain from MBFC sale, fair value gain from investments boost earnings

By UMA SHANKARI


KEPPEL Land has reported a fourth-quarter net profit of $841 million - almost eight times that of $106.9 million a year earlier - with the boost coming from a $364 million gain from the sale of the group's one-third interest in phase one of Marina Bay Financial Centre (MBFC) and a $426 million fair value gain from investment properties.

At the operating level, net profit for the three months ended Dec 31, 2010, jumped 21.9 per cent to $72.3 million.

The developer also said it plans to pay out a dividend of 18 cents per share for 2010, comprising a special dividend of 9 cents per share and an ordinary dividend of 9 cents per share. Last year, it paid out 8 cents a share in all.

Revenue for Q4 2010 dipped 6 per cent to $281.5 million - from $300.5 million for the same three months in 2009 - as Keppel Land completed more homes the previous year. But earnings were boosted as the group sold its one-third interest in the first phase of Marina Bay Financial Centre to its listed trust K-Reit Asia. Its fair value gain also reversed a fair value loss of $12 million in 2009.

For the whole of 2010, Keppel Land's net profit grew by 273 per cent to $1.05 billion from $280.4 million in 2009. But revenue dipped 14 per cent to $792.3 million from $923.9 million.

The developer sold more homes in Singapore and overseas in 2010. In total, Keppel Land sold 5,250 homes last year, about 50 per cent more than in 2009.

Overseas, a record 4,600 homes were sold mainly from the group's residential townships in China. But the group also sold some units in Singapore - it tendered for a site in May 2010 and launched the project in just six months in November. About 480 units of the 629 units in The Lakefront Residences have been sold so far.

Keppel Land is upbeat about the prospects of both the residential and office markets in Singapore.

'In Singapore, prospective buyers may hold back their purchasing decision after the government's recent anti-speculation measures to cool down the property market,' said group chief executive Kevin Wong. 'However, as the growth prospects for Singapore and Asia remain positive, the housing market will continue to attract both local and foreign buyers. While sales volume may be moderated, prices should remain stable.'

Several launches have been planned for 2011. In Singapore, a new phase of Lakefront Residences will be released as well as the remaining units of Marina Bay Suites and Reflections at Keppel Bay. Mr Wong also said that Singapore's prime office market is expected to continue to attract demand with the growth of finance and business services industries.

Keppel Land, which has $1.5 billion in cash and a net debt-equity ratio of 0.2, plans to grow further with acquisitions in both Singapore and overseas in 2011.

The group's shares gained 4 cents to close at $4.57 yesterday.

[mr funny]

http://www.straitstimes.com/Money/St...ry_627909.html

Jan 25, 2011

Keppel Land eyes mixed sites here

Developer is also keen on residential sites in China, says group CEO

By Esther Teo, Property Reporter


KEPPEL Land will be looking at acquiring large mixed-development sites in Singapore and residential sites in China targeted at owner-occupiers, its group chief executive Kevin Wong said at its results briefing yesterday.

Mr Wong said the mixed development site above Tanjong Pagar MRT station tendered last November was an example of the type of project the company was keen to pursue here. Its partnership with Hongkong Land and Cheung Kong Holdings had come in second to Malaysian tycoon Quek Leng Chan's GuocoLand bid of $1.7 billion for the coveted site last year.

Keppel Land announced a full-year net profit of a record $1.05 billion in the 12 months ended Dec 31 last year, up 273 per cent from the previous year. Fourth-quarter net profit surged to $841 million - almost eight times that of the same period last year.

Its record profit was aided mainly by a $364 million gain from the sale of the group's one-third interest in the first phase of the Marina Bay Financial Centre as well as higher fair value gain on investment properties, said Keppel.

Full-year revenue, however, was down by 14.2 per cent to $792 million from a year earlier, while fourth-quarter revenue slid from $300.5 million to $281.5 million.

Keppel Land said that it achieved strong residential sales last year, with 5,250 homes sold - of which a record 4,600 were located overseas, mainly in its residential townships in China.

Mr Wong said China's recent property cooling measures were directed at speculators, not genuine home buyers.

'The key for us is to look for opportunities to satisfy this (genuine home buyer) market, which actually has a very strong demand. So that will be one of the key approaches for us, whether in Singapore or China,' he added.

Keppel also said in a statement that it is in a strong financial position, with a cash surplus of more than $1.5 billion, to continue to 'actively pursue acquisition opportunities in Singapore and the region'.

Said Mr Wong: 'In Singapore, prospective buyers may hold back their purchasing decision after the Government's recent anti-speculation measures.

'However, as the growth prospects for Singapore and Asia remain positive, the housing market will continue to attract both local and foreign buyers,' he noted, adding that while sales volume may be moderated, prices should remain stable.

Full-year earnings per share rose to 72.8 cents, from 24.2 cents a year earlier, while net asset value per share was $2.97 as of Dec 31 last year, up from $2.36 previously.

The company is proposing a payout of 18 cents per share - comprising a special dividend of nine cents per share and an ordinary dividend of nine cents per share.

Keppel Land's shares closed four cents up at $4.57 yesterday.

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