Property and hotels group City Developments Limited (CDL) has posted a 16.3 per cent drop in group net profit to $80 million for the first quarter ended March 31, from the $95.6 million net profit in the same period a year earlier.
The lower bottom line was attributable to compressed profit margins for The Criterion executive condo (EC) - compared with higher profit margins achieved for the previous year from projects such as Coco Palms, D'Nest and Suzhou Hong Leong City Centre, as well as the absence of contribution from Commonwealth Towers, a joint venture project that was completed and sold out last year.
CDL also noted that while its New Futura condo in Leonie Hill Road has achieved stellar sales performance since its launch in January, profits were booked only for sales completed in the quarter.
The group's revenue rose 35 per cent to $1.06 billion in the first quarter from $783.7 million in the same period last year.
The increase was propelled by the completion of The Criterion EC. Under prevailing accounting standards, revenue and profits are recognised in entirety upon obtaining Temporary Occupation Permit for an EC project, CDL said.
The group also benefited from the maiden contribution of New Futura as well as continued contributions from Coco Palms and Suzhou Hong Leong City Centre.
AT A GLANCE
$1.06 billion (+35%)
$80 million (-16.3%)
The group, together with its joint-venture associates, sold 459 units, including ECs, with a total sales value of $792.6 million, a 66 per cent increase compared with the first quarter of last year.
CDL boosted its Singapore residential landbank in the quarter with the acquisition of three sites at state land tenders - in Handy Road, West Coast Vale and Sumang Walk in Punggol.
Including the Amber Park collective sale site acquired last October (with about 600 units planned) and existing unlaunched projects, the group now has a pipeline of over 3,000 residential units.
CDL also said it has four upcoming Singapore residential property launches lined up, in view of the improving market conditions.
First is Phase 2 of New Futura - the 60-unit North Tower - this weekend while its joint venture project, the 190-unit South Beach Residences in Beach Road, is expected to be soft launched in the third quarter. It is also planning for its West Coast Vale project to be launch-ready in the fourth quarter.
Concurrently, it is actively working on the Amber Park collective sale site, which has received its provisional permission, and plans to launch the project in the first half of next year.
CDL executive chairman Kwek Leng Beng said: "It was a strong quarter for our Singapore residential business. Our new launches have received overwhelming response, with The Tapestry emerging as Singapore's top-selling project for March."