Keppel Land reported a healthy second-quarter scorecard, underpinned by its residential projects in China and divestments from its property funds.
However, sales in Singapore slowed as a result of cooling measures and the total debt servicing ratio loan rules, Keppel Land chief executive Ang Wee Gee said at a briefing yesterday.
"We are a developer, so certainly, we would welcome the Government relaxing some of these measures," he said.
"But I think the Government has stated its position that it doesn't see a need to relax these measures in the near term."
Net profit for the second quarter ended June 30 rose 12.2 per cent to S$107.2 million from the same period last year.
However, revenue for the three-month period fell 7.8 per cent to S$304.6 million, mainly owing to lower contributions from its Shanghai projects, 8 Park Avenue and The Springdale.
But sales from The Botanica project in Chengdu helped support the firm's bottom line, despite lower contributions from its local project Marina Bay Suites.
Earnings from property investments was also lifted by 28.2 per cent to S$31.4 million on the back of higher rental income from its one-third stake in Marina Bay Financial centre Tower 3.
Net asset value per share slipped to S$4.47 as at June 30, down from S$4.52 as at Dec 31. Half-year earnings per share was 12.6 cents, up from 12.4 cents a year earlier. Net profit for the six-month period rose by a marginal 1.5 per cent to S$195 million, while revenue rose by 9.7 per cent to S$589.5 million.
As part of its efforts to plough capital into higher-yielding projects, Keppel Land also announced that it had bought a 3.2ha residential site in Jakarta and a site in Taipei to develop luxury homes.
This comes after its fund management arm Alpha Investment Partners sold Equity Plaza for S$550 million last quarter to Plaza Ventures, a consortium led by Mr Sam Goi's GSH Corp.
On the residential sales front in Singapore, the developer sold 98 new homes in Singapore in the first six months of this year, down from 210 units in the same period last year.
Residential sales came mainly from The Glades, which has sold an additional 81 units in the first six months of the year.
Keppel Land's upcoming 500-unit Highline Residences in Tiong Bahru is expected to be launched in this half of the year.
Its shares rose three cents to close at S$3.51 yesterday.
Q2 snapshot
Net profit: S$107.2 million (+12.2 per cent)
Revenue: S$304.6 million (-7.8 per cent)
Dividend: None
This article was first published on July 24, 2014.
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