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Keppel Land profit up 46% to $92m
20 April 2011
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KEPPEL Land's first-quarter net profit surged 45.5 per cent to $92.1 million on factors such as higher contributions from property sales and a hefty one-off gain.
Revenue for its first quarter ended March 31 more than tripled to $357.9 million, compared with $106.5 million in the same period last year.
The company's far better bottom line was due, in no small part, to stronger contributions from property trading as the residential market in Singapore rebounded strongly.
Sales of Singapore residential properties, including Reflections at Keppel Bay, The Lakefront Residences and Elita Promenade, a project in India, played a key role in the company's sterling showing.
A $24.4 million gain achieved after the company divested its interest in Keppel Digihub also added to its rise in earnings.
Another factor was better rental yields stemming from increased contributions from K-Reit Asia.
Net asset value per share rose to $2.91 as of March 31, up marginally from $2.90 as of Dec 31.
Earnings per share for the quarter were 6.3 cents, up from 4.4 cents for the same period last year.
Keppel Land said the recent round of property-cooling measures in Singapore has moderated both residential property demand and growth in their prices.
Despite that, the company said the outlook for the property market remains positive, buoyed by Singapore's stable economic growth and job market.
Giving an update on sales of its local residential projects, the group said it had sold 85 units in the first quarter, with most of that number coming from The Lakefront Residences.
Since the end of last month, the development has garnered a take-up rate of 91 per cent for the 591 units it has launched so far.
Another project, situated on a recently acquired land parcel next to Sengkang MRT station, will be launched for sale later this year.
Keppel Land shares closed at $4.36 per share, down by one cent.
Source: Straits Times News by Cheryl Lim
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