Property giant Keppel Land reported weaker than expected results in the first quarter of 2014, with net profit falling about nine percent to $87 million.
According to a Credit Suisse report, the slightly soft Q1 result was mainly due to the absence of a tax write-back, as well as lower profit from property trading but was partly offset by higher contributions from KREIT, MBFC T3, and from fund management.
The report added that profit is likely to be back loaded, underpinned by Keppel’s residential sales in China, with several projects expected to complete between Q2 and Q4 this year.
The developer sold 54 residential units in Singapore in Q1 compared to 59 during the same period last year. The majority of sales came from The Glades at Tanah Merah which found buyers for 84 percent of the initial 200 apartments launched at an average price of $1,440 psf.
Meanwhile, Keppel is likely to launch Highline Residences at Tiong Bahru in the second quarter. The 99-year leasehold development will feature up to 500 condo units.
Over in China, the sales volume also dropped with 570 units sold in Q1 2014 versus 850 a year before. But the sales value in the quarter was higher than in Q1 last year due to better sales in luxury projects.
Credits: Property Guru