Keppel Land achieves strong profit growth

Keppel Land almost doubled its net profit in the second quarter at S$94.7 million. That is 87.5 per cent higher for the three months ended June 30 compared to the previous year.

More property sales also lifted its net profit in the first half of this year, up 76.8 per cent to S$236.6 million.

Sales of homes in China doubled in the second quarter this year to 490 units.

In the first half of this year, Keppel Land sold more than 1,000 new homes – mainly in Singapore and China.

This raised net profit for its property trading segment by 182 per cent to S$199 million in the first half of 2012.

Despite the good sales, Keppel Land does not see Keppel Bay Plot 3, housing 370 units near the completed Reflections at Keppel Bay, being launched in 2012.

Kevin Wong, group CEO, Keppel Land, said: “For Plot 3 we are doing our design and in fact, constructing our show gallery. As to the timing of the launch, we have to watch the market. Of course today is not the best time, but we will monitor the market.”

Keppel Land’s higher net profit is also due to the bigger contribution from its property investment segment.

Net profit from property investment increased 38.8 per cent from the same period last year to S$38.6 million in the first half of the year.

This, after K-REIT acquired 87.5 per cent stake in Ocean Financial Towers in December.

Keppel land said the Singapore office sector remains resilient as the market saw good leasing demand in the first half of 2012. New tenants at the Marina Bay Financial Centre Tower 3 were also secured, bringing its commitment rate to 70 per cent.

Source : Channel NewsAsia – 18 Jul 2012

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