Property developer City Developments has reported a net profit of S$139.3 million for the first quarter this year, up 68 percent from a year ago.
This improved performance came on the back of stronger revenue, which surged 20.6 percent to S$750.4 million.
Accordingly, basic earnings per share increased 68.1 percent to 15.3 cents.
All its business segments had shown improvement compared to last year’s, with the property development segment still the main contributor of the group, said CDL.
The profit contribution from rental properties segment, in particular, had recorded an improvement of 90.8 percent, attributed mainly to the gain recognized on disposal of the North Bridge Commercial Complex in March.
The group’s 53.9-percent stake in Millenium and Corpthorne Hotels (M&C) also showed better performance during Q1 2010, with trading performance and revenue in line with management expectations.
Separately, CDL said that it had an exposure of S$16.5 million to an ongoing clash involving unauthorised investments made by M&C’s subsidiary.
The company said that it has obtained legal advice and has not made provisions.
Looking ahead, CDL said that it is confident that sentiments in the property, hospitality and commercial sectors will see continuous improvement. It expects to remain profitable over the next 12 months.