City Developments' earnings inch up in third quarter

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City Developments' earnings inch up in third quarter

Published on Nov 15, 2012

By Magdalen Ng


PROPERTY giant City Developments Limited (CDL) yesterday reported a third-quarter net profit of $134.5 million, up 1.8 per cent from the same period a year earlier.

Revenue for the quarter ended Sept 30 rose 3.4 per cent to $832.9 million.

However, the cost of sales grew a hefty 26.9 per cent to $454.6 million.

Other operating income jumped to $44.3 million, as gains from the disposal of certain strata units in Citimac Industrial Complex, Elite Industrial Building II, GB Building and Pantech Business Hub were recognised.

The property development segment was again the lead contributor to Singapore's second largest developer. Revenue from the segment was up 8.4 per cent at $348.8 million, but pre-tax profit slid 41 per cent to $76.5 million.

Despite the increased revenue for the quarter, pre-tax profits declined, mainly because last year profits were recognised from the sale of land in Kuala Lumpur.

The rise in revenue was attributed to maiden contributions from The Glyndebourne, Buckley Classique and H2O Residences.

This quarter, CDL's two executive condominium projects, The Rainforest and Blossom Residences, were fully sold, but no profits can be realised under new accounting rules.

In a statement filed with the Singapore Exchange, CDL also said its hotel operations delivered a "satisfactory performance" in the quarter despite challenging trading conditions and global economic uncertainty.

Profit contribution from hotel operations declined 20 per cent to $55.7 million, partly due to pre-operating expenses incurred by W Singapore Sentosa Cove Hotel, which officially opened last month.

However, the decreases were mitigated due to an impairment loss recorded on a hotel in the United States in the same quarter last year.

CDL noted that while the outlook for the property market in the medium to long term is positive, there could be some oversupply in 2014 and 2015, with more residential units being completed.

"This fear will be unwarranted if the world economy turns around by that time and a majority of the completed units are owner-occupied.

"The group hopes that the property cooling measures that have been imposed will be lifted in due course," it said.

Earnings per share was 14.8 cents, up from 14.5 cents a year ago, and net asset value per share increased to $7.77 from $7.51 as at Dec 31.

CDL shares fell 19 cents to $11.33 yesterday.

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http://www.straitstimes.com/premium/...arter-20121115

City Developments' earnings inch up in third quarter

Published on Nov 15, 2012

By Magdalen Ng


PROPERTY giant City Developments Limited (CDL) yesterday reported a third-quarter net profit of $134.5 million, up 1.8 per cent from the same period a year earlier.

Revenue for the quarter ended Sept 30 rose 3.4 per cent to $832.9 million.

However, the cost of sales grew a hefty 26.9 per cent to $454.6 million.

Other operating income jumped to $44.3 million, as gains from the disposal of certain strata units in Citimac Industrial Complex, Elite Industrial Building II, GB Building and Pantech Business Hub were recognised.

The property development segment was again the lead contributor to Singapore's second largest developer. Revenue from the segment was up 8.4 per cent at $348.8 million, but pre-tax profit slid 41 per cent to $76.5 million.

Despite the increased revenue for the quarter, pre-tax profits declined, mainly because last year profits were recognised from the sale of land in Kuala Lumpur.

The rise in revenue was attributed to maiden contributions from The Glyndebourne, Buckley Classique and H2O Residences.

This quarter, CDL's two executive condominium projects, The Rainforest and Blossom Residences, were fully sold, but no profits can be realised under new accounting rules.

In a statement filed with the Singapore Exchange, CDL also said its hotel operations delivered a "satisfactory performance" in the quarter despite challenging trading conditions and global economic uncertainty.

Profit contribution from hotel operations declined 20 per cent to $55.7 million, partly due to pre-operating expenses incurred by W Singapore Sentosa Cove Hotel, which officially opened last month.

However, the decreases were mitigated due to an impairment loss recorded on a hotel in the United States in the same quarter last year.

CDL noted that while the outlook for the property market in the medium to long term is positive, there could be some oversupply in 2014 and 2015, with more residential units being completed.

"This fear will be unwarranted if the world economy turns around by that time and a majority of the completed units are owner-occupied.

"The group hopes that the property cooling measures that have been imposed will be lifted in due course," it said.

Earnings per share was 14.8 cents, up from 14.5 cents a year ago, and net asset value per share increased to $7.77 from $7.51 as at Dec 31.

CDL shares fell 19 cents to $11.33 yesterday.

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Published November 15, 2012

CDL's earnings rise 1.8% in Q3 to $134.5m

But 9-month profit falls 32.5% in the absence of divestment gains

By Kalpana Rashiwala


CITY Developments Ltd (CDL) recorded a 1.8 per cent year-on-year rise in net profit to $134.5 million for the third quarter ended Sept 30, 2012.

Revenue increased 3.4 per cent year-on-year to $832.86 million, the property and hotel group said yesterday.

CDL's bottomline was helped by gains from the disposal of some strata units in Citimac Industrial Complex, Elite Industrial Building II, GB Building and Pantech Business Hub in Q3, as well as gains accounted on realisation of certain long-term financial assets. The sale of strata units at Burlington Square in Bencoolen Street and a maiden contribution from Hedges Park condo in Upper Changi also helped boost earnings.

However, for the first nine months of 2012, CDL's net profit fell 32.5 per cent year-on-year to $429 million. This was mainly due to substantial divestment gains booked in 2011 from the sale of The Corporate Office, The Corporate Building (both along Robinson Road) and the sale and leaseback of Studio M Hotel in the Mohamed Sultan Road area. Revenue slipped 3.6 per cent to $2.47 billion for the period.

Earnings per share edged up to 14.8 cents in Q3 from 14.5 cents a year earlier. Net asset value per share was $7.77 at end-September 2012, up from $7.51 at end-December 2011.

For Q3 and the nine-month period, CDL booked profits from the following Singapore residential projects - Buckley Classique, 368 Thomson, Cube 8, Volari, Hundred Trees, H20 Residences, The Glyndebourne (a project on Dunearn Road by CDL's 55 per cent owned hotel subsidiary Millennium & Copthorne Hotels) as well as other joint venture projects such as NV Residences, Tree House, The Gale and Hedges Park.

CDL said no profit had been booked from two fully sold executive condo projects - The Rainforest and Blossom Residences - due to new accounting treatments. Profits have also not been recognised from four other projects as their construction is still in early stages.

These are Bartley Residences (a 702-unit JV project released in February that is more than 92 per cent sold); The Palette (an 892-unit JV condo project in Pasir Ris released a year ago and now over 94 per cent sold); UP@Robertson Quay and Haus@Serangoon Garden.

UP@Robertson Quay is a hotel and residential mixed development project that includes 70 residences. It was launched in May this year and 48 of the 55 units released for sale have been sold at an average price of $2,400 psf. For Haus@Serangoon Garden, released in July, 86 of the 97 terrace houses have found buyers.

In Q4 2012, the group is planning to release Echelon, a 43-storey twin tower development in Alexandra Road. Designed by SCDA, the project's 508 units range from studio units to four-bedroom apartments and penthouses. Early next year, the group hopes to release a 912-unit condo in Pasir Ris.

CDL said that at end-September 2012, the group's Singapore office portfolio continued to enjoy healthy occupancy of 94.2 per cent, compared with the islandwide rate of 90.3 per cent.

South Beach - CDL's JV project with Malaysia's IOI group - is on track for completion in 2015.

In China, the group's fully owned unit, CDL China, is in the midst of amending design submission plans for its luxury residential development at Eling Hill in Yuzhong District, Chongqing. "Due to the historically important and culturally sensitive nature of the location, the planning authorities have given substantial input to the design in order to help it blend better with the green surroundings. This project will be launched at the appropriate time as the China property market improves," CDL said.

CDL's net gearing ratio increased to 24 per cent at end-September from 21 per cent a year earlier. For the first nine months of 2012, interest cover was 16.1 times, down from 22.1 times in the same period last year.

The group said that while the outlook for the Singapore property market remains positive in the medium to long term, there could be some oversupply in 2014-2015 with more residential units being completed.

"However, this fear will be unwarranted if the world economy turns around by that time and the majority of the completed units are owner-occupied. The group hopes that the property cooling measures that have been imposed will be lifted in due course."

In general, CDL expects Singapore residential property prices to remain stable with moderate increases of varying degrees, depending on a project's location and unique propositions.

The counter closed 19 cents lower at $11.33 yesterday. CDL announced its results after the market closed.