Banyan Tree Posts $4.9m Q3 Loss, Hit By Thai Turmoil

Source : The Business Times, November 14, 2008

RESORT operator Banyan Tree Holdings posted a net loss of $4.88 million for the third quarter ended Sept 30, hit by the political turmoil in Bangkok which deterred travellers and forced the closure of Phuket Airport for a weekend in August.

Bright spot: Q3 hotel residences revenue rose to $17.2m from $3.6m, with revenue recognition from villas and suites in Phuket, Lijiang, Dusit Laguna and Bangkok

In comparison, the company earned a net profit of $49.1 million in Q3 2007, which was bolstered largely by a one-off exceptional gain of $44.5 million then arising from the recognition of negative goodwill. Revenue for Q308 was flat at $82.75 million.

Earnings per share for Q308 was negative 0.64 cents, down from 6.45 cents in Q307. For the nine months ended Sept 30, net profit plummeted 78 per cent to $13.98 million while revenue grew 19 per cent to $321.72 million.

During the quarter, hotel residences revenue surged from $3.6 million to $17.2 million, as a result of revenue recognition from villas and suites at Banyan Tree Phuket, Banyan Tree Lijiang, Dusit Laguna and Banyan Tree Bangkok.

Revenue from hotel investment dropped 13 per cent to $37.4 million on the back of lower revenue from Thailand as the political crisis in Thailand affected visitor arrivals.

At $8.7 million, property sales were also lower than Q307's $16.3 million while hotel management revenue decreased by $0.4 million to $4.3 million.

Banyan Tree said that it is embarking on a series of cost cutting and spend curbing measures in order to preserve cash.

'We are approaching the outlook of the group more cautiously given the increased deterioration of the global financial situation and a period of great uncertainties,' warned the group, adding that the political turmoil in Thailand, if protracted, could have significant impact.

'We expect fourth quarter 2008 results to be lower than last year.' However, the group expects Banyan Tree to remain profitable for FY2008.

The group has seven new hotels slated to start operations next year - two in Mexico, three in the Middle East, and one each in Bali and China.

Banyan Tree closed at 51 cents yesterday, down 3.5 cents.

Wheelock's Q3 Net Profit Falls 39%

Source : The Business Times, November 14, 2008

Wheelock Properties on Friday said net profit for the third quarter of this year fell 39 per cent to S$132.67 million compared to a year ago.

Revenue was up 21 per cent at S$229.53 million. The increase in revenue was mainly due to the commencement of revenue recognition in respect of units sold in Scotts Square.

The Group's investment property, Wheelock Place, was revalued from $700 million to $790 million by a firm of independent professional valuers based on increased rental reversion.

Decrease in investments of S$188 million was mainly due to the decrease in market value of its investments in Hotel Properties Limited and SC Global Developments Ltd. The decrease for HPL was charged to the fair value and revaluation reserve whilst the decrease for SC Global was charged to the income statement as the investment was considered to be impaired.

Decrease in development properties of S$294 million was mainly due to progress billings from the development properties projects and recognition of the remaining 15% of sales consideration to be billed on The Sea View and The Cosmopolitan upon completion. This was partially offset by recognition of profit on development properties projects and construction costs incurred.

It said if the effects of the revaluation surplus (net of tax) of S$74 million (2007: S$164 million) on Wheelock Place and impairment loss of S$85 million on SC Global were excluded, the group's profit after tax for the 3rd quarter would have been $133 million, an increase of 148 per cent.

New Home Sales On Hold: CDL

Source : TODAY, Friday, November 14, 2008

AMID the weakening property market, City Developments said it will delay selling homes at new projects for now.

About 130 units remained unsold among the homes it had already released for sale. At the same time, CDL and its partners in the South Beach development, located downtown, have agreed to delay construction on expectations that building costs will retreat, said the company.

Singapore’s second-largest developer by assets revealed this yesterday, as it posted a drop in earnings for the three months ended Sept 30. Its net profit fell 11 per cent to $150.8 million due to weak demand at its property and hotel businesses. Revenue declined 14 per cent to $688.2 million.

Despite an “uncertain” global economic outlook, CDL expects to show a profit in its property development, hotel operations and investment properties business over the next 12 months. - AGENCIES

CityDev's Net Profit For Q3 Drops 11% To S$150.8m

Source : Channel NewsAsia, 13 November 2008

Property firm City Developments (CityDev) has posted net profits of S$150.8 million for the third quarter of this year, down 11 per cent from last year. Revenue for the period fell 13.6 per cent to S$688 million.

The firm said it would hold back the launch of new residential projects for the time being, in light of the subdued property market and global economic uncertainty.

It has also agreed with its joint venture partners to defer construction of its South Beach development until construction costs come down from their present high levels.

Lower revenue figures were attributed to the fact that many of its projects, such as the Savannah CondoPark, The Equatorial, The Pier at Robertson and The Imperial, had been fully sold by the end of last year.

The company also saw lower earnings from its City Square Residences and a decline in land bank sale in New Zealand.

In addition, the slowing global economy caused CityDev's hotel business to decline by about 5.1 per cent in the third quarter as compared to last year.

CityDev also said that the weakening of the US dollar and the pound against the Singapore dollar contributed to lower earnings.

For the first nine months of the year to September, net profits stood at S$481 million, 1.8 per cent lower compared to the same period last year. - CNA/so

Condo Launch Goes Ahead Despite Gloom

Source : The Straits Times, Nov 14, 2008

Developer to roll out Woodlands project on back of solid soft launch

A DEVELOPER is rolling out a rare condominium launch in Woodlands this weekend - optimistic that lower-than-planned prices will draw buyers, despite the gloomy market conditions.

Prices at the 200-unit, 99-year leasehold development start from $435,000 for a two-bedroom unit and go up to $1.1 million for a four-bedroom ground floor unit. -- PHOTO: EL DEVELOPMENT

EL Development is launching the 99-year leasehold, 200-unit Rosewood Suites at $580 per sq ft (psf) on average.

The developer held a sneak preview to test the market a fortnight ago and then a soft launch last weekend, when it sold half of the 60 units launched.

Launches have been few and far between in recent months as most developers continue to hold off, given the volatile markets and poor sentiment.

'We tested the market...and we were pleasantly surprised that the response was good, so we are going ahead with the launch,' said Mr Lim Yew Soon, managing director of EL Development, a unit of local builder Evan Lim & Co.

'If we had waited till next year, there would be a lot of competition. It's better to have a first-mover advantage.'

Rosewood Suites is a five-storey development with one- to four-bedroom apartments. It is in Rosewood Drive, next to the 99-year, 478-unit Casablanca condominium and opposite Innova Junior College. The popular suburban mall, Causeway Point, and Woodlands MRT station are both within walking distance.

Prices start from $435,000 for a two-bedroom unit and go up to $1.1 million for a four-bedroom ground-floor unit. This works out to $500psf to $660psf.

'Our earlier price expectations were higher. We benchmarked current prices against the prices of older condos in the area,' said Mr Lim. Those who bought at the soft launch received a 2 per cent discount from these price levels, he said.

'It is a fair value in today's market,' said Knight Frank director of research and consultancy Nicholas Mak. 'There has not been a major development launch in the area for a long time so there will be some latent HDB upgrader demand.'

Mr Lim said the buyers were mostly dwellers of nearby flats and condominiums. There are two other condominiums in Rosewood Drive - Casablanca and Rosewood.

At Casablanca, two caveats lodged in September and October showed that two 1,184sqft units were sold at $541psf and $549psf, or $640,000 and $650,000.

Caveats lodged in the same months at the 437-unit Rosewood showed that two 1,173sqft units were sold for $537psf to $550psf, or at $630,000 and $645,000.

Rosewood Suites' penthouses, priced from $700,000 to $1.4 million, will be released only when 'times are better'.

EL Development bought the Rosewood Suites site from the Singapore Land Authority in November last year when prices were strong. It topped a tender that drew eight bidders with a price of $56 million or $232psf per plot ratio.

Mr Lim had then said that they had planned to launch the project in the third quarter of this year, and sell it for about $600 psf to $650 psf.