Property firm City Developments Limited (CDL) has posted a 32 percent decline in net profit to S$163.2 million for the fourth quarter ended 31 December 2011, mainly attributed to lower profits in the property rental segment.
Revenue for the three-month period soared 7.4 percent to S$721.5 million.
The company’s results were announced by Kwek Leng Beng, Executive Chairman of CDL, who warned that the government may likely impose another round of property measures if bids during state tenders for ‘niche sites’ near MRT stations continue to trend upward.
“I won’t be surprised if the government wants to introduce further measures to prevent runaway prices. As far as I’m concerned, I’m quite happy and I don’t believe the market is going to nosedive . . . I think we’re on a good road, but if you take into account the fierce bids on many good sites, it shows that the market hasn’t cooled enough. (That being said) there’s always a time lag – (like) the effect of medicine, you cannot get cured overnight.”
The company plans to strengthen its portfolio in China with a S$500 million boost to its wholly-owned subsidiary, CDL China, as well as the establishment of its China regional headquarters in Shanghai by the second quarter of this year.
“We don’t have targets as to how much we want to spend in China . . . It’s still a very new market for us so we’re treading with caution,” said Sherman Kwek, Chief Executive of CDL China.
In terms of full-year results, the company recorded a 1.9 percent increase in net profit to S$798.6 million, while revenue climbed 5.7 percent to S$3.3 billion.
Meanwhile, the group is gearing up to launch two more projects in the first half of 2012, after the successful launches of Bartley Residences and The Rainforest (pictured) in Choa Chu Kang earlier this year. Other projects include a 96-unit terrace housing project at Serangoon Garden Way and a mixed-development at Robertson Quay comprising 70 lifestyle apartments and loft units, as well as a 300-room hotel.
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