CityDev's 2007 Profit Doubles To $725m

Source : The Business Times, February 28, 2008

City Developments, South-east Asia's second-largest developer, said on Thursday that 2007 net profit more than doubled, beating expectations due to strong home sales and hotel revenues.

CityDev's full-year results did not take into account revaluation gains on its investment properties, which would have boosted full-year earnings to $2.8 billion

The developer, controlled by Singapore tycoon Kwek Leng Beng, reported a full-year net profit of $725 million (US$519.3 million) against $351.7 million a year earlier.

CityDev said in a statement that its prospects are good this year. 'Property development will continue to make significant contribution with locked-in profits yet to be recognised from its pre-sold residential projects,' it added.

CityDev's full-year results did not take into account revaluation gains on its investment properties, which would have boosted full-year earnings to $2.8 billion, the company said.

Its accounting differed from rival CapitaLand, South-east Asia's biggest developer, which last week reported revaluation gains of $136.8 million on its assets for the final quarter of 2007.

Private home prices in Singapore jumped 31.2 per cent last year, boosting the profits of CityDev and its Singapore rivals CapitaLand and Keppel Land.

CityDev said it sold a total of 1,655 units with sales value reaching $3.38 billion in 2007, profits of which will be recognised progressively based on construction progress.

But prices rose a slower 6.8 per cent in the fourth quarter, and is expected to moderate further this year, reflecting concerns about global growth and the effect of government measures to cool the market.

CityDev's 53 per cent-owned hotel arm Millennium & Copthorne, which operates 112 upmarket hotels globally, announced on Feb 20 that profit before tax rose 21 per cent to 157.4 million pounds (US$306.6 million). -- REUTERS