Keppel Land’s Q3 net profit hits S$58m

October 20th, 2011 at 12:46 pm

Keppel Land, a wholly-owned subsidiary of Keppel Corporation, has reported a 6.6 percent increase in its Q3 net profit to S$58 million, mainly attributed to higher earnings from property developments and the introduction of a new accounting policy.

The company implemented the policy in January this year, under which revenue and profit from overseas trading projects are recognised only upon full completion.

Meanwhile, Keppel Land’s revenue in Q3 declined 14 percent to S$111.7 million, down from S$129.9 million over the same period last year. The decline in revenue was due to lower contributions from its property trading segment, which was partly offset by higher revenue from its property investment, fund management, hotels and resorts, and property services segments.

For the first nine months of this year, the company recorded a net profit of S$191.8 million against the restated net profit of S$256.1 million for the same period in 2010. This was mainly due to lower contributions from property trading, which was partially offset by an improved showing from fund management income and a one-off divestment gain in Q1 this year.

The company sold approximately 420 homes in Singapore during this period, with the majority of units sold coming from The Luxurie project in Sengkang, which has received an 86 percent take-up rate out of the 250 units launched in late August.

It also sold more than 1,600 units overseas during the period, with a take-up rate of almost 900 units in the third quarter.

“In China, buyer interest remains healthy for the group’s quality projects such as The Botanica in Chengdu, The Seasons in Shenyang and The Springdale in Shanghai. China home sales for the third quarter amounted to 780 units. In August, Keppel Land China acquired a prime 21.5-ha lakefront residential site in Wuxi, which can yield around 2,500 units, including commercial components,” it said.

Going forward, the company will launch new developments and project phases opportunistically, and will concurrently seek well-located sites in Singapore and overseas for the development of residential, townships, commercial and mixed-use projects.