The Straits Times | April 18, 2013
Keppel Land yesterday announced a slide of 31.9 per cent in net profit to $96.6 million for the three months to March 31.
The group said one key reason for the decline was a bumper profit recognised from units sold at Reflections at Keppel Bay under the deferred payment scheme in the same period a year earlier.
Despite the drop in the bottom line, revenue for the three months rose 21.6 per cent to $207 million, mainly thanks to improved contributions from its property trading, hotels and resorts, and fund management segments.
"Revenue from Singapore operations increased by $105.7 million, mainly from Lakefront Residences and The Luxurie as a result of higher percentage of physical completion achieved in the current quarter," Keppel Land said.
No dividends will be recommended for the three months ended March 31.
Earnings per share for the quarter came in at 6.2 cents, down from 9.5 cents in the corresponding quarter a year earlier. Net asset value per share as of March 31 was $4.11, up from $3.99 cents on Dec 31 last year.
Keppel Land also said it will maintain its focus on the group's two core markets of Singapore and China.
"The group will look out for opportunities to acquire more residential, commercial, township and mixed-use developments in these markets," it noted. Keppel had acquired a stake in retail mall Life Hub @ Jinqiao in Pudong, Shanghai, in February this year.
It also sold 850 units in China home sales during the quarter, up from 190 units sold in the same period a year ago. Sales were mainly from its developments in Chengdu and Shanghai.
Keppel Land's Corals at Keppel Bay is ready for launch and sales are expected to start soon. The development comprises 366 waterfront homes, mostly one- and three-bedroom units with sizes ranging from 600 to 1,500 sq ft.
KepLand's share price rose two cents to close at $3.99 yesterday.
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