Source : The Business Times, August 14, 2007
SINGAPORE - City Developments (CityDev), Southeast Asia's second-largest developer, said on Tuesday that its quarterly net profit more than quadrupled on stronger home sales and higher office rentals in Singapore.
Looking ahead, the property giant said it expects Singapore's economy to perform well and that the real estate market would be one of the main beneficiaries.
Related links:
City Developments' half-year financial report
http://tinyurl.com/2a52ap
Financial statement
http://tinyurl.com/2heq2p
Consolidated corporate results table
http://tinyurl.com/237ges
The firm, which is controlled by billionaire Kwek Leng Beng, earned $194.4 million (US$127.7 million) in the April-June period, up from $44.9 million a year earlier.
For the six months ended June, net profit was $320.5 million up from $86.1 million a year ago.
CityDev, which didn't pay an interim dividend last year, said it would pay a special dividend before tax of 10 Singapore cents for the first half of 2007.
'The group has achieved the best results in its history,' CityDev said in its earnings statement.
For the half year to June, property development accounted for 56 per cent of pretax profit, up from 38 per cent in the first six months of 2006, while hotels contributed 30 per cent, compared with 53 per cent previously.
CityDev has a 53-per cent stake in London-based hotels group Millennium & Copthorne, which last week posted a 44 per cent jump in second-quarter pretax profit to US$71.6 million.
CityDev said it sold 1,315 residential units worth $2.4 billion in the first half, compared with 386 units valued at $815 million in January-June 2006.
It also said the office market performed strongly with rents increasing by 11 per cent in the second quarter and capital values gaining 8.9 per cent.
The company said that as it has relatively little debt, it is in a 'prime position not only to undertake large-scale projects but also seize any acquisition opportunities as they arise'. -- REUTERS
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