Keppel Land's Q2 profit inches up

Keppel Land's Q2 profit inches up

SINGAPORE - Property giant Keppel Land's net profit inched up a marginal 0.9 per cent to $95.5 million in the second quarter from a year earlier.

Turnover for the three months to June 30 shot up 153.6 per cent to $330.5 million year on year.

KepLand said this jump was mainly due to its property trading segment, where revenue rocketed 258.4 per cent to $269.4 million.

The firm pointed to higher revenue recognition for two condominiums in Singapore - The Lakefront Residences, which is near Lakeside MRT station, and The Luxurie, near Sengkang MRT station. Both are on 99-year leases.

That, plus revenue from other developments in Shanghai, offset lower sales from Jakarta Garden City in Indonesia and no revenue from the freehold Madison Residences in Bukit Timah, which was completed in June last year.

However, net profit from property trading slid 6.3 per cent to $61.3 million for the quarter. In the property investment segment, revenue fell 12.6 per cent to $12.3 million but net profit was still up 32.4 per cent at $24.5 million.

KepLand put this down to an improved performance from Keppel Reit and a higher contribution from Marina Bay Financial Centre Tower 3, which was completed in March last year.

About 34.9 per cent of net profit came from overseas during the second quarter.

Chief executive Ang Wee Gee told a briefing at the Hotel Inter- Continental on Wednesday that the developer sold about 210 homes in Singapore in the first six months of this year, up from 190 units over the corresponding period last year.

Its 366-unit Corals at Keppel Bay condominium has sold 141 out of the 160 units launched as at the end of June, according to Urban Redevelopment Authority data released on Monday.

Mr Ang said the firm plans to launch six new projects in Singapore and China in the second half of this year. These include the 99-year leasehold The Glades in Tanah Merah, which is 30 per cent owned by China's largest residential developer China Vanke.

Mr Ang said The Glades is likely to go on the market in the third quarter of this year and added that KepLand was currently exploring possibilities for more collaboration with China Vanke.

He also said the firm "would like to do more commercial developments overseas" in future, making use of the knowledge and network that it has built up through its commercial developments here.

Net profit for the first half of the year fell 18.8 per cent to $192.1 million, though revenue climbed 78.8 per cent to $537.4 million.

Earnings per share dropped slightly to 6.2 cents for the second quarter, from 6.3 cents a year earlier. Net asset value per share was $4.06 as at June 30, up from $3.99 as at Dec 31. KepLand's share price closed a cent lower at $3.57 on Wednesday.

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