City Developments books 2.8% rise in Q1 net profit

City Developments (CDL) has booked a 2.8 per cent rise in net profit for the three months ended Mar 31, on the back of increased revenue from property development and hotel operations.

The Singapore property developer’s net attributable profit after tax and non-controlling interests was S$123 million in the first quarter, up from S$119.7 million in the same period a year ago.

In a statement, City Developments said there were contributions from property development projects like Coco Palms, D’Nest and Jewel @ Buangkok. However, these were partially offset by the absence of contributions from projects that were completed last year.

Higher hotel revenue was driven by income from new hotels acquired in 2014, along with better performance from refurbished hotels. In terms of pre-tax profits, the property development segment was the largest contributor, with rental properties next, then hotel operations.

CDL reported an increase of 11 per cent in revenue to S$814.9 million, up from S$734.2 million in the same period a year ago. CDL said even as it expands overseas and develops new platforms, its investment in Singapore will remain the mainstay of its business.

A year ago, the Group announced that in light of the subdued domestic property market and persistent headwinds, it was embarking on accelerating its diversification strategy by expanding its core real estate development business overseas and developing an unlisted funds management business.

CDL said it has made good progress in these fronts and under the current environment, new opportunities continue to present themselves. It expects to remain profitable for the current year.

Source : Channel NewsAsia – 13 May 2015

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