City Development's profits fell 11% in 4Q
Amidst property curbs in Singapore.
According to a release, City Development posted an 11% fall in 4Q profit amidst property measures in Singapore.
Net income also declined to S$221 million ($174 million) in the three months ended Dec. 31. Meanwhile, property development was the main contributor to Group earnings, despite the challenging Singapore
market, due in part, from several rounds of Government cooling measures. Launched projects continued
to book in good sales.
The Group has locked-in profits from substantially sold projects that are recognised based on stages of construction. Profits from three of its fully sold Executive Condominiums (ECs) have yet to be recognised
in line with prevailing accounting treatment, which only allows profit recognition in entirety upon completion of construction.
Rental properties saw increase in profits but these were mainly due to the unlocking of shareholder value
on non-core assets to recycle capital for new opportunities.
Profit contributions from Millennium & Copthorne Hotels plc (M&C) were lower primarily due to differences in accounting treatment of income recognition between Singapore and London for The Glyndebourne condominium, which was completed in Q4 2013.
M&C’s revenues were also affected by the temporary removal of 290,000 room nights from its inventory over the course of the year as a result of ongoing asset management programme. Some regions faced competitive trading conditions.
Robust basic earnings per share of 73.7 cents (FY 2012: 73.2 cents). Strong balance sheet with cash and cash equivalents of $2.87 billion and healthy gearing ratio at 20.0%. Had the Group factored in fair value gains on investment properties, the net gearing ratio would be reduced further to 14.0%. Interest cover is at 15.2 times (FY 2012: 17.4 times) Amidst property curbs in Singapore.
In a release, City Development posted an 11% fall in 4Q profit amidst property measures in Singapore.
Net income also declined to S$221 million ($174 million) in the three months ended Dec. 31. Meanwhile, property development was the main contributor to Group earnings, despite the challenging Singapore
market, due in part, from several rounds of Government cooling measures. Launched projects continued
to book in good sales.
The Group has locked-in profits from substantially sold projects that are recognised based on stages of construction. Profits from three of its fully sold Executive Condominiums (ECs) have yet to be recognised
in line with prevailing accounting treatment, which only allows profit recognition in entirety upon completion of construction.
Rental properties saw increase in profits but these were mainly due to the unlocking of shareholder value
on non-core assets to recycle capital for new opportunities.
Profit contributions from Millennium & Copthorne Hotels plc (M&C) were lower primarily due to differences in accounting treatment of income recognition between Singapore and London for The Glyndebourne condominium, which was completed in Q4 2013.
M&C’s revenues were also affected by the temporary removal of 290,000 room nights from its inventory over the course of the year as a result of ongoing asset management programme. Some regions faced competitive trading conditions.
Robust basic earnings per share of 73.7 cents (FY 2012: 73.2 cents). Strong balance sheet with cash and cash equivalents of $2.87 billion and healthy gearing ratio at 20.0%. Had the Group factored in fair value gains on investment properties, the net gearing ratio would be reduced further to 14.0%. Interest cover is at 15.2 times (FY 2012: 17.4 times)
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