Singapore Land’s net profit surged almost four times to S$273.3 million in the second quarter, fuelled by higher fair value gains on investment properties, despite increasing capital values.
The company achieved fair value gains on investment properties of S$247.6 million in Q2, up from S$10.1 million over the same period last year.
However, excluding fair value gains, the company’s net profit from operations dropped 13 percent to S$55.2 million, mainly attributed to lower contribution from associated companies, as well as the absence of contribution from the One Amber condo project.
Singapore Land Tower at Raffles Place led the upward valuations, with valuations climbing 8.6 percent to S$1.46 billion as of 30 June 2011, from S$1.345 billion at end-December 2010.
Meanwhile, Clifford Centre saw a 7.9 percent valuation gain to S$520 million, while The Gateway at Beach Road was valued at S$1.07 billion, up seven percent from six months earlier.
SingLand’s Q2 revenue soared 37 percent to S$173.7 million, boosted by an increase in progressive sales recognition of trading property, due to higher percentage of completion and the additional units sold at The Trizon residential project.
Looking ahead, SingLand is expecting the growth of office rentals to moderate amidst increasing supply of new and resale office space.
“In spite of substantial future retail space supply especially in the suburbs, retail rents are expected to be relatively resilient, underpinned by high employment, rising income and visitor arrivals,” it said.
“Although office occupancy rates have improved…renewal rental rates were still lower than the expiry rates.”
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