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Thread: CityDev's Q1 profit trebles, revenue rises 42.1%

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    Default CityDev's Q1 profit trebles, revenue rises 42.1%

    Published May 15, 2007

    CityDev's Q1 profit trebles, revenue rises 42.1%

    Revenue from property development up 247%


    CITY Developments Limited (CDL) has more than trebled its first-quarter net profit to $126 million from $41.21 million.

    St Regis Residences: Among the joint venture projects which contributed to profits

    For the three months ended March 31, revenue jumped 42.1 per cent to $769 million from $541.4 million for the previous corresponding period. Earnings per share rose to 13.9 cents from 4.6.

    Revenue contribution from CDL's property development segment increased by 247 per cent to $258.5 million with profit before tax increasing 170.8 per cent to $104 million.

    In a statement released yesterday, CDL said profits were recognised from pre-sold projects such as City Square Residences and the Tribeca.

    CDL's reported revenue does not include its share in joint venture entities of $126 million for the quarter. However, the group's share of the profits from these entities is included in the pre-tax profit.

    Joint venture projects which contributed to profits were St Regis Residences, The Sail @ Marina Bay, Residences @ Evelyn, The Pier, Parc Emily and Edelweiss Park. Residences @ Evelyn is also now fully sold, it said.

    CDL said no profit was recognised from the fully-sold The Oceanfront @ Sentosa Cove as it is still in its initial stages of construction. No profit was recognised from One Shenton or The Solitaire either.

    For the group's performance in other segments, pre-tax profit in its rental segment was up 437.5 per cent to $12.9 million compared to $2.4 million a year ago. This also excludes No. 1 Shenton Way which is scheduled for redevelopment.

    CDL said the increase in pre-tax profit was due to improvement in revenue as well as profit contribution from CDL Hospitality Trusts, in which CDL's subsidiary Millennium & Copthorne Hotels (M&C) has a 39 per cent stake.

    Revenue from rental properties increased by 15 per cent to $46.6 million due to improved average occupancy and rental rates.

    Revenue from its hotel operations increased by 7.7 per cent to $450.4 million and pre-tax profit increased by 55.2 per cent to $41.9 million.

    The increase in both revenue and pre-tax profit was attributed to the improvement in the group's revenue per available room (RevPAR) particularly in New York, London and Singapore. CDL also said that in the first four weeks of April, M&C's RevPAR was up by 7.6 per cent.

    Looking ahead, CDL said that the group has acquired about 513,000 sq ft of land since the begining of the year, and this will provide more than 1.1 million sq ft of potential development area at a cost of about $795 million.

    Combined with its land acquisitions in 2006, CDL said it has accumulated about 1.5 million sq ft of additional land area.

    Residential development launches in the coming months include a 110-unit luxury development called Cliveden at Grange, a 223-unit development at Quayside Collection in Sentosa, and a 40-unit development at Mount Sophia called Wilkie Studio.

    CDL has just launched the 493-unit Botannia in the West Coast vicinity and it says 135 of the 150 units launched have been sold.

  2. #2
    mr funny is offline Any complaints please PM me
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    Default Re: CityDev's Q1 profit trebles, revenue rises 42.1%

    May 15, 2007

    CDL earnings treble to $126m on soaring high-end sales

    Revenue surges 42% to $769m as developer continues to reap benefits of booming housing market

    By Bryan Lee

    HIGH RETURNS: CDL's pre-tax profit from its property development unit jumped to $104 million as it reaped earnings from high-end projects such as St Regis Residence (above). Future earnings will be boosted by the strong launch of One Shenton (next picture) during the first quarter.

    PROPERTY group City Developments (CDL) trebled first-quarter profit to $126.1 million, thanks to huge gains from red-hot sales of luxury residences in Singapore.

    Revenue in the quarter ended March 31 rose 42 per cent to $769.1 million. The bottom-line improvement was due mostly to the company's mainstay property development business.

    Like other Singapore developers, CDL is reaping the benefits of a resurgent market led by strong demand in the high-end luxury property segment.

    Strong sales of top-tier condominiums drove revenue from the unit to $258.5 million, almost four times the $74.5 million in the same period last year.

    Pre-tax profit from the unit jumped to $104 million from $38.4 million as CDL reaped earnings from high-end developments such as St Regis Residences and The Sail @ Marina Bay.

    Mid-tier projects such as City Square Residences and the Tribeca, as well as mass-market ones like Edelweiss Park also contributed to the robust bottom line.

    Future earnings look set for a boost from strong property sales during the quarter. The company's two launches in the period did well with One Shenton substantially sold and The Solitaire at Balmoral sold out.

    Profits from these sales, plus the fully sold The Oceanfront @ Sentosa Cove, have not been booked in the first-quarter results.

    The existing building at the One Shenton site will be pulled down only next month, while construction of The Solitaire and The Oceanfront has just begun.

    Expecting the property boom to continue, CDL, has been adding to its land bank. Land purchases made since last year amount cumulatively to 1.5 million sq ft.

    CDL also benefited from a 10 per cent rise in office rentals. The company, whose commercial property has been more than 90 per cent occupied, said high demand and limited supply will keep this segment buoyant.

    It was also good times in the hospitality business where CDL subsidiary Millennium & Copthorne (M&C) Hotels saw net profit more than double to 12.2 million (S$36.7 million). Hotels in New York, London and Singapore performed strongly, helping to buoy revenues by 9 per cent to 153.1 million.

    CDL said a restructured and buoyant Singapore economy will continue to support the local property market.

    'For the first time, after so many challenging years, all real estate sectors are performing well and concurrently moving with an upward momentum,' it said.

    CDL will launch more projects in the coming months, including a boutique 40-unit development in the Mount Sophia area called Wilkie Studio.

    Earnings per share were 13.9 cents, up from 4.6 cents. Net asset value per share was $5.34, up from $5.21 as at Dec 31.

    CDL has declared a dividend of 1.93 cents per preference share.

    Its shares closed up 10 cents at $16.90, ahead of the evening results announcement.

    [email protected]

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