Keppel Land reported a 38.8 per cent drop in earnings on-year for the first quarter of 2009.
Net profit for the three months ended March 31 came in at some S$36.9 million.
Sales for the same period fell by over 46 per cent on-year to S$145.7 million.
Earnings per share also fell by 39.3 per cent to 5.1 cents.
Keppel Land says the poor showing was due largely to the weak market conditions in Asia brought on by the knock-on effects of the global recession.
The decrease in revenue was attributed to the completion of several trading projects in Singapore and overseas in the previous financial year.
Lower revenue was also recorded for several projects in India and China, due to the economic slowdown.
But that was partly mitigated by sales of its residential projects like Park Infinia and The Tresor, which sold 15 units each to date.
The group’s fund management business continued to do well.
K-REIT Asia, a real estate investment trust sponsored by Keppel Land, reported a 37.3 per cent on-year jump in distribution income for the first quarter on positive rental reversions.
The company says its outlook for Singapore’s residential market remains weak and it has deferred the construction of higher-end projects such as Marina Bay Suites.
But it is optimistic about its township projects in China which has registered strong sales following the country’s stimulus package.
Source : Channel NewsAsia – 22 Apr 2009