City Developments’ second quarter earnings tumbled 37.7 per cent from last year to S$137.7 million.
The Singapore-listed developer noted a lack of substantial divestment gains in 2012 compared to a year earlier, and said revenue in the latest quarter was down by 19.6 per cent to S$787.7 million.
From its hotels worldwide, Revenue Per Available Room (RevPAR), which is a measure of how good a hotelier is at filling unoccupied rooms, rose 4.5 per cent.
However, CDL makes most of its money from developing properties, and it said no profits were realised from some residential projects because they are still uncompleted.
CDL also dismissed concern about a potential oversupply of residential units in the Singapore market.
CDL’s executive chairman Kwek Leng Beng said: “The government is paying a lot of attention to the low-end and offering many sites. I think by the time they are completed, there will be a slight oversupply. (Where) residential (units) are concerned, we are not so afraid of oversupply because time will take care of oversupply.”
Source : Channel NewsAsia – 14 Aug 2012