Singapore Land’s net profit plunges 51% to $330.7m in 2011

As gross rental income from investment properties dropped by $8.6 million last year.

In a financial statement, Singapore Land reported revenue of $615.3 million, whch increased by $88.1 million (17%) due to improved sales recognition of trading property and higher revenue from Pan Pacific Singapore hotel, partially offset by lower rental income.

Sales of The Trizon residential project at $250.7 million was higher by $84.6 million (51%) due to additional units sold and higher percentage of completion. Revenue from Pan Pacific Singapore hotel increased by $11.5 million (11%) to $121.3 million with higher room and occupancy rates, and higher F&B revenue. Although office occupancy rates have improved, gross rental income from investment properties dropped by $8.6 million (4%) to $237.0 million as new office leasing rates were still lower than the expired lease rates.

Share of associates' operating results decreased by $13.0 million (24%) to $41.1 million due mainly to the absence of $20.6 million contribution from One Amber, partially offset by higher contributions from Mandarin Oriental and Marina Mandarin. The Group also shared a $17.5 million (2010: $24.9 million) fair value gain on revaluation of Novena Square and West Mall.

Based on valuation by professional valuers as at 31 December 2011 on the investment properties held by subsidiary companies, a fair value gain of $126.4 million (2010: $538.5 million) was credited to the income statement.

In summary, net profit from operations increased by $9.7 million (5%) to $214.8 million (2010: $205.1 million). After adding the fair value gain on investment properties, net of deferred income tax and and non-controlling interests, of $115.9 million (2010: $469.0 million), the Group's overall net profit was $330.7 million (2010: $674.1 million).