Keppel Land first-half profit plummets 18.8% to $192.1m

Lower earnings from property trading.

In a release announcing its financial highlights for the half year ended 30 June 2013, Keppel Land achieved a net profit of $192.1 million for the first half of 2013, 18.8% lower compared with $236.6 million earned in the first half of 2012.

This was due primarily to lower earnings from property trading compared with the same period in 2012 when there was a significant profit recognition of $137.7 million from Reflections at Keppel Bay from units sold under the deferred payment scheme.

The Group’s contribution from overseas recorded 79.3% growth to $50.2 million year‐on‐year, compared with $28 million in the same period last year. The bulk of Keppel Land’s overseas profit came from the recent sales of more than 50 units at 8 Park Avenue in Shanghai and the completion of The Botanica Phase 6, comprising 1,248 units, in Chengdu.

Property investment contribution rose 27.4% to $48.9 million on improved performance by Keppel REIT and higher contributions from Marina Bay Financial Centre Tower 3. 

The Group’s fund management vehicles, Keppel REIT and Alpha Investment Partners (Alpha), contributed $22.9 million or about 12% of net profit for the first half of this year.