Strong home sales boost KepLand profit by 42%

Strong home sales boost KepLand profit by 42%
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STRONG residential sales and a thriving market for office space have helped boost Keppel Land’s (KepLand’s) second-quarter net profit by 42.3 per cent to $63 million.

For the quarter ended June 30, sales rose 55.1 per cent to $359.2 million, which the property developer attributed to the ’strong performance’ of its projects in Singapore and overseas.

Such examples include The Belvedere and Urbana in Singapore, Villa Riviera in China and Elita Promenade in India.

KepLand’s earnings from overseas represented 48 per cent of profits during the quarter, well down from 75 per cent a year earlier on the back of stronger sales in Singapore.

For the half-year, group turnover was $654.6 million, way higher than the $350.5 million in the year-ago period.

This was the result of revenue coming from existing projects and new projects launched this year, such as Sixth Avenue Residences in Singapore.

Rental income from the group’s office buildings was lower than that for the second quarter of last year, as KepLand had sold four of its office buildings - Bugis Junction Towers, Prudential Tower, Keppel Towers and GE Tower - in April last year.

However, revenues from KepLand’s hotels and resorts, fund management and property services were higher than in the year-ago period.

Earnings per share for the half-year rose to 17.4 cents, up from 11.2 cents, while net asset value per share rose to $2.24 as at June 30 from $2.21 as at Dec 31 last year.

Looking ahead, KepLand managing director Kevin Wong said Singapore’s property market is expected to remain strong.

Meanwhile, the group will continue to pursue residential and township developments in countries such as China and Vietnam.

Mr Wong said: ‘We are very bullish on the Vietnam market and we will continue trying to secure new projects.’

In Singapore, residential developments have also performed well, he said, due to strong demand from local and foreign homebuyers.

For example, sales of Reflections at Keppel Bay have reached about 97 per cent of the 493 units launched and Park Infinia at Wee Nam has hit the 89 per cent sales level. The Suites at Central, Urbana, The Linc, Freesia Woods and Elysia have all been fully sold.

Source: The Straits Times, 25 July 2007