Property group City Developments (CDL) said its net profit surged 78 percent to S$282.34 million for the first quarter ended March 31.
The property developer attributed its improved financial performance to strong profit contribution from the rental properties segment, as well as gains from the sale of investments.
The investments that were sold are The Corporate Office and a strata unit in GB Building.
The Corporate Office, a high-rise office development in the Central Business District, was sold for S$215 million in February.
First quarter revenue was S$773.75 million, up from a restated revenue of S$704.79 million in 2010.
Earnings per share for the quarter was 31.1 cents, versus 17.4 cents a year ago.
CDL is bullish about its prospects going forward.
In a statement released on Wednesday, it said, “The global economic climate has largely improved and recovery will continue to be led by strong growth in the Asian region, even in the wake of the Japan earthquake disaster.”
“On the back of Singapore’s strong growth for Q1 2011, which is expected to continue at a more moderate pace for the rest of the year, the Group is optimistic that positive sentiment and business confidence will be sustained.”
It has proposed a dividend of 1.93 cents per preference share, to be paid out on June 30.
On Wednesday, CDL shares closed at S$11.60, up 2 cents.
Source : Channel NewsAsia – 11 May 2011