Mainboard-listed property firm City Developments (CDL) said its fourth quarter net profit rose 41.1 per cent on-year to S$249.2 million.
This is despite revenue for the period falling 25.1 per cent to S$690.9 million.
CDL said the increase was due to higher profit contribution from the rental properties segment due to gain recognised primarily from the sale of the Group’s remaining strata-units in Chinatown Point.
For the full year, net profit rose 26.2 per cent to S$749 million.
But revenue for the year also declined 4.4 per cent to S$3.12 billion.
CDL said despite the strong take-up rate for residential sales launched by the Group during the year, it was not able to recognise profit from some of its launched projects as construction on the projects had either not commenced or not reached the recognition stage yet.
As a result, the performance of the property development segment was lower in the fourth quarter and full year of 2010 as compared to the corresponding periods in 2009.
Going forward, CDL Executive Chairman Kwek Leng Beng said the government’s proactive approach has ensured that Singapore remains highly sought-after as an ideal place for investments.
He added that fluctuations in property transaction volumes are likely to be temporary and are inevitable.
Source : Channel NewsAsia – 24 Feb 2011