Keppel Land net profit up 22% to S$583.7m in 2013

Solid growth spurt amid a challenging market.

Releasing its financial results for 2013, Keppel Land announced it achieved record revenue of about $1.5 billion for 2013 on strong contribution from Singapore and China.

Net profit before fair value gain grew 22% to $583.7 million in 2013. Including fair value gain, net profit was higher at $885.9 million. Overseas profits rose 64% to $141.1 million on greater contribution from China residential projects such as 8 Park Avenue and The Springdale in Shanghai.

As a result, the proportion of overseas earnings surged to 33% of net profit before divestment and fair value gain, up from 19% in 2012, said Keppel Land. In line with the Group’s strategy to proactively unlock value and recycle its assets, Keppel Land sold its stakes in Jakarta Garden City and Hotel Sedona Manado, in Indonesia. The divestments contributed $151.8 million to net profit.

Net profit from property investment increased 52% to $124.7 million on stronger contribution from Marina Bay Financial Centre Tower 3 and Keppel REIT, as well as maiden contribution from Life Hub @ Jinqiao in Shanghai, China. The Group’s fund management business achieved net profit of $46.7 million, contributing about 11% of net profit.

The Group’s net asset value per share has increased by 13% to $4.52. The Board has recommended a final dividend of 13 cents per share for 2013, subject to approval by shareholders at the next Annual General Meeting to be held in April 2014.

Keppel Land sold 370 units in Singapore in 2013, mostly from its newly‐launched projects The Glades at Tanah Merah and Corals at Keppel Bay. The Group plans to launch its CBD‐fringe project located near Tiong Bahru MRT Station in the first half of this year, capitalising on limited new supply in the vicinity. The Group sold 3,870 units in China in 2013, more than double the 1,650 units sold in 2012. Major projects which contributed to the strong take‐up include The Botanica in Chengdu as well as The Springdale and 8 Park Avenue in Shanghai. The Group will launch new projects such as Hill Crest Villa in Chengdu and Waterfront Residence in Nantong.

The Group further revealed that the net proceeds of about $246 million from the sale of Jakarta Garden City and Hotel Sedona Manado will be reinvested in Indonesia, with focus on Jakarta. The Group has, yesterday, announced the acquisition of a well‐located site in Jakarta to be developed into over 1,200 homes and ancillary shophouses.

"Moving forward, the Group will focus and scale up in its core markets of Singapore and China and growth markets of Vietnam and Indonesia. It will also invest opportunistically in markets with good growth potential such as Myanmar and Sri Lanka. It will grow its commercial portfolio overseas. The Group will continue to actively recycle capital to achieve higher returns," said Keppel Land.