Keppel Land’s Q1 net profit surges 75% to S$64.7m

Mainboard-listed developer, Keppel Land, said on Tuesday its first quarter net profit surged 75.3 per cent on-year to S$64.7 million.

Revenue rose 9 per cent to S$158.8 million for the three months ended March 31.

Keppel said the improved performance came on the back of robust residential property sales in Singapore and overseas.

Net profit from its property trading arm grew 53.6 per cent to S$48.7 million.

The developer said contributions came mainly from its projects – Reflections and Carribbean at Keppel Bay, Marina Bay Suites and Marina Bay Residences in Singapore as well as The Arcadia and Villa Rivera in China.

In particular, Reflections at Keppel Bay achieved strong take-up, with 97 per cent of the 760 units launched sold to date.

Meanwhile, recovery in the office market also boosted its net profit from property investment by 29.2 per cent to S$12.4 million from a year ago.

Grade A office occupancy increased 94.5 per cent in the first quarter, up from 93.9 per cent in the previous quarter. Keppel said its Grade A developments are benefiting from the “flight to quality” trend.

The Marina Bay Financial Centre chalked up 78 per cent commitment rate, while the Ocean Financial Centre chalked up 31 per cent.

Going forward, the group expects strong buying sentiment to continue this year and the office market to improve along with the economic recovery.

It will seek acquisitions in Singapore and overseas, with continued focus on developing quality residential, office and township projects.

Keppel also plans further launches of Marina Bay Suites and Reflections at Keppel Bay in tandem with the opening of the Marina Bay Sands resort.

Capitalising on the economic spin-offs from the Shanghai World Expo, it will also launch The Springdale in Nanhui and two blocks at 8 Park Avenue in the second half of the year.

Source : Channel NewsAsia – 20 Apr 2010

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