Keppel Land Q3 net profit up 6.6% to S$58m

Property developer Keppel Land has reported a 6.6 per cent on-year increase in its third quarter net profit to S$58 million from a restated S$54 million last year.

In a statement, Keppel Corp’s real estate unit said the increase was due to higher earnings from property investment, as well as the introduction of a new accounting policy.

The group adopted a new policy in January, under which revenue and profit from overseas trading projects is recognised only on full completion.

But for the quarter ended September 30, Keppel Land’s revenue fell 14 per cent to S$18.2 million due to lower revenues in the property trading segment. Sales for the quarter also declined 14 per cent to S$111.7 million from a restated S$129.9 million in the same period last year.

Lower contribution from property trading also dragged Keppel Land’s net profit for the first nine months of 2011 to S$191.8 million from a restated S$256.1 million a year ago.

However, fund management income increased 70 per cent to S$39.7 million, its best first nine-month results to date.

Moving ahead, the group said it “will launch new developments and project phases opportunistically and will concurrently seek well-located sites in Singapore and overseas for the development of residential, townships, commercial and mixed-use projects.”

Source : Channel NewsAsia – 19 Oct 2011

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