CDL’s Q2 net profit up 17%

City Developments (CDL) on Friday announced a 17 per cent year-on-year increase in its second quarter net profit to S$220.9 million.

The company also registered a 0.2 per cent drop in its revenue to S$979.4 million.

The group said that property development continues to be a major contributor to the group’s profits, which include hotel operations and rental properties.

Hotel operations benefited from the continued good trading performance from its main key gateways in London, Singapore and New York, while gains were recognised from the sale and leaseback of Studio M Hotel.

The company added that it currently has several projects in the pipeline, including four property launches.

CDL’s executive chairman, Kwek Leng Beng, commented that the group is watchful of the global economic situation, but estimates that the growth in the region will remain “fairly steady”.

“With a low interest rate environment, developers here will be mindful of market appetite, which will be a major factor in deciding the timing of the launches and purchase or tender for development sites,” he said.

Basic earnings per share increased for the second quarter by 17.4 per cent to 23.6 cents.

A special interim ordinary dividend of 5 cents per ordinary share has been declared.

Source : Channel NewsAsia – 12 Aug 2011

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