KepLand posts lower Q3 net profit of $70.1m

Keppel Land has posted a 10-per-cent decline in its third quarter net profit to $70.1 million from a year ago.

This is largely because of lower revenues from its hotel and resort, and property trading segments.

For the three months ended Sept 30, the developer posted sales of $149 million, down 34.5 per cent on-year.

On the residential front, KepLand said there is cautious sentiment in the market following the Government’s cooling measures in August.

However, the company remains optimistic about demand for homes in good locations and plans to go ahead to launch its Lakeside Drive project by the end of the year.

Overseas sales have been strong, especially in the Chinese market, it said.

KepLand said it has sold 3,200 units overseas from the start of the year, with China accounting for about two-thirds of the number.

In the fourth quarter, KepLand plans to launch new units at 8 Park Avenue in Shanghai and the first eco homes in Seasons Park at Tianjin Eco-city.

There could also be new opportunities from upcoming potential acquisitions due to an asset swap deal with K-Reit Asia.

KepLand recently proposed to divest one-third of Marina Bay Financial Centre Phase 1 in return for Keppel Towers and GE Tower, subject to approvals from both groups of minority shareholders at upcoming extraordinary general meetings.

Source : Today – 21 Oct 2010