KepLand Q1 profit slips 9.2%

SINGAPORE - Keppel Land's net profit for the first quarter ended March 31 slipped 9.2 per cent to S$87.7 million, dragged down by lower contributions from associates and jointly controlled entities and the absence of a tax writeback.

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Here are Keppel Land's financial highlights for the quarter ended March 31, 2014:

Contribution from property investment and fund management increased 8.9 per cent and 14.9 per cent respectively Keppel Land achieved a 37.6 per cent year-on-year (y-o-y) increase in revenue to $284.9 million for the first quarter ended March 31, 2014, due largely to contributions from China residential projects.

Despite a higher pre-tax profit of $112.2 million, the Group's net profit of $87.7 million fell 9.2 per cent from $96.6 million a year ago due to the absence of a tax writeback.

At the net profit level, contribution from property trading was 37.4 per cent lower at $35.6 million due to the completion of Phase 6 of The Botanica and Marina Bay Suites which contributed significantly a year ago, while property investment was 8.9 per cent higher at $29.3 million on improved contributions from Keppel REIT and Marina Bay Financial Centre Tower 3.

Fund management profit was up 14.9 per cent to $13.1 million due mainly to higher contribution from Alpha Investments Partners (Alpha).

Overseas net profit rose 63.8 per cent to $26.7 million on stronger contribution from China residential projects, namely The Springdale and 8 Park Avenue in Shanghai.