City Developments’ Q1 profit up 68% to S$139m

Property developer City Developments said its first quarter net profit rose about 68 per cent on-year to S$139.3 million.

The improved performance came on the back of stronger revenue, which went up 20.6 per cent to S$750.4 million dollars.

Accordingly, basic earnings per share rose 68.1 per cent to 15.3 cents.

CDL said all its business segments had shown improvement compared to last year. The property development segment remained the group’s main contributor.

In particular, the profit contribution from the rental properties segment, being the second in line in terms of contribution for this quarter, had recorded an improvement of 90.8 per cent.

This was due to the gain recognised on disposal of the North Bridge Commercial Complex in March.

Its 53.9 per cent stake in Millenium and Corpthorne Hotels (M&C) also delivered positive performance in the first quarter of the year, with revenue and trading performance in line with management expectations.

Separately, Citydev said it had a S$16.5 million dollar exposure to an ongoing dispute involving unauthorised investments made by a subsidiary of M&C.

The company said it has not made provisions for this and has obtained legal advice.

Looking ahead, however, the developer said it is optimistic that sentiments in the real estate, commercial and hospitality sectors will continue to improve. It expects to remain profitable over the next 12 months.

Source : Channel NewsAsia – 12 May 2010