Keppel Land’s profit down to $133.8m

Revised accounting policy magnified the drop in property trading.

The lower net profit for the first half of 2011, compared to the $201.7m for the same period in 2010, was due primarily to a fall in contribution from property trading attributed to the adoption of a revised accounting policy.

The company said the decline was partly mitigated by stronger contribution from fund management income and a one-off $24.4 million gain on the divestment of interest in Keppel Digihub in the first quarter of 2011.

Net profit from property trading declined to $65.1 million for the first half of 2011, as more overseas projects such as Villa Riviera and phases of The Botanica, Central Park City and Serenity Cove in China were completed in the same period last year. In contrast, only one overseas project, Elita Promenade in Bangalore, India was completed in the first half of 2011.

The first half of 2010 also saw substantial net profit contribution from the completion of units sold under the Deferred Payment Scheme at Marina Bay Residences in Singapore.

Fee income from fund management grew 52% to $23.9 million, which accounted for 18% of Keppel Land’s net profit, with higher acquisition and management fees earned by K-REIT Asia Management and Alpha Investment Partners. This is the best half-year performance from the Group’s fund management vehicles over the past five corresponding periods.