Keppel Land Limited, Singapore’s second largest property developer, has seen an 18 percent year-on-year increase in net profit to $204.8 million for the nine months that ended September 30, 2010, attributed to the recovery of Asian property markets on improved economic conditions.
Net profit from property trading rose 15.4 percent to $154 million, driven by a strong contribution from residential projects in Singapore and China.
Net profit from property investment also surged 35.9 percent to $42.8 million due to higher rental income from Barclays House and higher contribution from K-REIT Asia.
The developer also saw a 57.3 percent increase in earnings from fund management to $22.5 million due to higher acquisition and management fees gained by Alpha Investment Partners and K-REIT Asia Management.
However, its net profit declined 10.7 percent to $70.1 million in Q3, compared to $78.5 million over the same period last year. This was mainly attributed to lower revenues from its hotels and resorts, as well as property trading segments.
Keppel Land also recorded sales of $149.2 million in Q3 2010, down 34.5 percent from $227.8 million in Q3 2009.
While there is a cautious market sentiment after the government’s announcement of recent cooling measures, Keppel Land is still optimistic about demand for homes in good locations and it also plans to launch its Lakeside Drive project by the end of the year.