Keppel Land, a property arm of Keppel Group, has announced that its net profit in the first half of 2011 dropped 33.7 percent to S$133.8 million, attributed mainly to the adoption of its revised accounting policy.
“This new accounting standard will result in profit recognition that is lumpy, creating more volatility in the group’s earnings,” it said.
However, the company said the “decline was partly mitigated by stronger contribution from fund management income and a one-off S$24.4 million gain on the divestment of interest in Keppel Digihub in the first quarter of 2011.”
Meanwhile, Keppel Land’s revenue in the first half of 2011 increased 8.9 percent to S$462.1 million but its net profit fell 34 percent to S$133.8 million, from S$201.7 million.
Net profit from property trading also dropped to S$65.1 million in H1, as more overseas projects like Villa Riviera and phases of The Botanica, Central Park City and Serenity Cove in China were completed in the same period last year.
On the contrary, only one overseas project, Elita Promenade in Bangalore, India was completed in the first half of 2011. The first half of 2010 also saw substantial net profit contribution from the completion of units sold under the Deferred Payment Scheme at Marina Bay Residences in Singapore.
In Singapore, the company said property measures announced in January this year moderated new home sales. Keppel Land sold 160 homes in the first half of 2011, mainly from continuing good sales at the Lakefront Residences.
“The development has achieved a 95 percent take-up of the 621 units launched in eight months. To ride on the selective demand for well-located suburban homes, the group intends to launch its residential development near the Sengkang MRT station later this year,” it said.
In addition, high demand for its township and eco homes in China were recorded despite recent anti-speculation measures dampening transaction volumes.
“Central Park City in Wuxi sold more than 200 units, bringing total take-up to 88 percent of the 1,313 launched units. Seasons Park at Tianjin Eco-city sold about 130 units, which translates into a take-up of 75 percent of the 787 launched units. The group sold about 400 units in China in the first half of 2011. Potential buyers remain on the sidelines as they continue to monitor market reaction to the cooling measures.”
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