http://www.businesstimes.com.sg/arch...soars-70-1419m
Published April 19, 2012
Keppel Land Q1 profit soars 70% to $141.9m
Big boost from property trading, which more than trebled to $133.4m
By Mindy Tan
KEPPEL Land recorded a 70 per cent jump in first-quarter net profit to $141.9 million from $83.3 million a year ago, boosted by improved contribution from property trading.
Net profit from property trading for the three months ended March 31, 2012, more than trebled to $133.4 million from $43 million a year ago, largely due to bumper contribution from Reflections at Keppel Bay following the handover of completed units to buyers who bought under the deferred payment scheme.
Property investment also performed well, with net profit up 38 per cent at $20 million on higher contribution from K-Reit Asia following its acquisition of an 87.5 per cent stake in Ocean Financial Centre.
In addition, higher fee income for K-Reit Asia Management and Alpha Investment Partners led to a 36 per cent year-on-year increase in net profit from fund management to $12.8 million.
Keppel Land's revenue for the quarter slid 52 per cent year-on-year to $170.2 million, due to a fall in revenue from its Singapore and overseas operations by $89.4 million and $98.3 million respectively.
In Singapore, the decline came mainly from the trading projects, particularly The Lakefront Residences, which was partly cushioned by the new revenue stream from The Luxurie (launched in August 2011).
The lower revenue from the group's overseas operations was attributable primarily to lower revenue recognition for Elita Promenade in Bangalore, which was completed in March 2011.
In Singapore, the group sold over 90 homes in the first quarter of 2012, with the bulk from its suburban development, The Luxurie, in Sengkang. In addition, the group has set aside about 150 units at Reflections at Keppel Bay for corporate residences.
Overseas residential sales remained subdued on cautious market sentiment amid property cooling measures and global economic uncertainties. Keppel Land sold about 270 overseas homes in the quarter, with China accounting for the bulk of residential sales - about 190 units - mainly from Phase 6 of The Botanica township in Chengdu and The Springdale in Shanghai.
Earnings per share rose 67 per cent to 9.5 cents, from 5.7 cents.
Keppel Land shares gained 4 cents to close at $3.34 yesterday.