Published May 15, 2007
CityDev's Q1 profit trebles, revenue rises 42.1%
Revenue from property development up 247%
By ARTHUR SIM
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.