SINGAPORE - City Developments (CDL) reported a 4.7 per cent rise in third quarter earnings, even as it reiterated its call for the easing of Qualifying Certificates (QC) deadlines.
Net profits for the quarter were $127.2 million, boosted by the completion of its 602- unit Blossom Residences executive condominium. Revenue rose 58.3 per cent year on year to $1.32 billion for the three months to Sept 30.
Under prevailing accounting standards, profits for the EC project were recognised in entirety only upon obtaining its temporary occupation permit (TOP).
The group also noted that residential property prices in Singapore have yet to stabilise, with "no signs of any rebound."
However, with a limited land bank and the restrictions imposed by the QC rules which makes it difficult for affected developers to buy land from the private market, competition for prime land is "still keen" as developers need to restock their land bank, said CDL.
Prices for public Government Land Sales tenders therefore appear resilient given that there is also strong demand from foreign developers, especially those from China, given the sluggish property market in their home country.
In a sign of the slowing property market, CDL noted that "developers are also banding together in joint ventures to spread their risks in view of escalating land prices...Foreign construction companies are also tendering...to keep their employees and machineries occupied."
For the nine months to Sept 30, earnings fell 17.1 per cent to $384.7 million, while revenue rose 20.3 per cent to $2.92 billion.
Earnings were lower as the corresponding period in 2013 had including significant divestment gains from non-core investment properties, the group said. Excluding such divestment gains from year to date Sept 2013, on a like-for-like comparison, the group's core earnings would have increased by 25.5 per cent for year to date Sept 2014, it said.