KepLand posts 70% rise in Q3 profit on property trade

PHOTO: KepLand posts 70% rise in Q3 profit on property trade

Stronger contributions from its property trading segment helped prop up Keppel Land's net profit for the third quarter.

The property giant recorded net profit of $126.4 million for the three months to Sept 30, up 70 per cent from the same period a year ago.

Revenue shot up 151 per cent to $417.9 million from $166.4 million a year earlier.

KepLand recorded higher revenues from its Chinese properties as units at The Springdale in Shanghai and Seasons Park in Tianjin Eco-City were handed over to buyers. The firm also recognised higher revenue from its launch of 8 Park Avenue in Shanghai in June, it announced on Wednesday.

It sold about 1,130 units in China in the third quarter, well up on the 290 sold in the same period last year.

In Singapore, KepLand moved about 310 units in the nine months to Sept 30, mostly from its recently launched The Glades in Tanah Merah, Corals at Keppel Bay and The Luxurie in Sengkang.

Revenue in the property investment segment fell 8.3 per cent to $12.9 million, but net profit was up 9.3 per cent at $40 million. KepLand said this was thanks to improved rental yields, which helped improve contributions from Keppel Reit and Marina Bay Financial Centre Tower 3.

Third-quarter earnings per share remained unchanged at 20.6 cents from the corresponding period a year earlier.

Net asset value per share was $4.15 as at Sept 30, up from $3.99 as at Dec 31.

In July, KepLand announced it was selling its 51 per cent stake in Jakarta Garden City, an integrated township in Indonesia, for about $240 million. The firm is expected to book a divestment gain of about $152 million, when the sale is completed by November, it said.

The firm also sold its 50 per cent stake in Hotel Sedona Manado for $8.8 million in the third quarter, with a divestment gain of $3.3 million. However, it noted that it remains committed to Indonesia, with a focus on Jakarta.

KepLand said it plans to expand its portfolio of commercial properties overseas. It will also continue to strengthen its position in Vietnam and Indonesia, while focusing on growth in its core markets of Singapore and China.

KepLand shares closed four cents up at $3.62 on Wednesday.

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