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Keppel Land profit in Q1 falls 9.2%

SINGAPORE — Keppel Land said yesterday it will continue to deepen its presence in its core markets of Singapore and China while strengthening its position in growth markets Indonesia and Vietnam, after reporting that its earnings fell 9.2 per cent in the first quarter.

SINGAPORE — Keppel Land said yesterday it will continue to deepen its presence in its core markets of Singapore and China while strengthening its position in growth markets Indonesia and Vietnam, after reporting that its earnings fell 9.2 per cent in the first quarter.

Net profit for the three months ended March fell to S$87.7 million, from S$96.6 million last year, due to the absence of a tax writeback, Keppel Land said in a statement after markets closed yesterday. Of that, S$26.7 million came from overseas, up 63.8 per cent on-year.

Revenue jumped 37.6 per cent to S$284.9 million, due largely to contributions from China, where it sold 570 residential units.

This is fewer than the 850 units it sold on the mainland during the same period last year, but the company managed to achieve a higher sales value due to more luxury projects being sold, it said.

In Singapore, Keppel Land sold 54 homes in the first quarter, down from 59 units in the same period last year, as take-up fell due to mortgage restrictions imposed by the Total Debt Servicing Ratio framework and the Lunar New Year holiday.

Most of the sales were from The Glades in Tanah Merah. The group plans to launch its CBD-fringe project, Highline Residences, located near Tiong Bahru MRT Station, in the second quarter this year.

Keppel Land’s announcement came as Urban Redevelopment Authority data showed that sales of new private homes in Singapore had backtracked last month after showing some signs of life in February, with analysts expecting interest to remain weak in the coming months given the continuous cautious sentiment in the market.

The company said it will continue to monitor any risks to the group, including political and economic uncertainties as well as unfavourable regulatory measures, and will take the necessary actions to mitigate them.

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