Keppel Land has reported a net profit of $64.7 million in the first quarter of the year, up by 75 percent from last year’s $36.9 million. This is on the back of strong residential sales and better contributions from its property investment and fund management units.
Revenue for the three months ended 31 March 2010 was $158.8 million – up by nine percent from $145.7 million for Q1 2009 – as the property developer recognized progressive revenue contributions from its residential developments in Singapore.
Net profit from the property trading division increased 54 percent year-on-year to $48.7 million. Contributions came primarily from Reflections and Caribbean at Keppel Bay, Marina Bay Residences and Marina Bay Suites in the country, as well as Villa Riviera and The Arcadia in China.
The property developer intends to release in phases another 100-200 units at Reflections at Keppel Bay throughout the year to capitalize on demand for premium residences near the Resorts World Sentosa integrated resort, it said. Marina Bay Suites will also be officially launched to capitalize on Marina Bay Sands’ opening.
Other business units also recorded better year-on-year earnings. Net profit for the property investment segment surged 29 percent to $12.4 million, as the Singapore office market saw fair recovery. Fund management profit also climbed to $7.4 million, up by 61 percent, on higher fee income from Alpha Investment Partners, as well as from office trust K-Reit Asia’s manager.
Earnings per share during Q1 increased to 4.5 cents, 25 percent higher than last year’s restated 3.6 cents to take into account a rights issue.
The net debt-to-equity ratio of the company climbed slightly from 0.22 at end-December 2009 to 0.24 at end-March 2010, mainly due to the use of its rights proceeds for capital injection into Keppel Tianjin Eco-City and a residential project in Hunnan District in Shenyang, as well as for funding its Marina Bay projects.
Shares of Keppel Land fell 1.9 percent, or seven cents, to close at $3.66 yesterday.