Singapore's Keppel Land says Q3 net profit doubles 23 Oct 2007 18:40

(Adds details, background)

By Sebastian Tong

SINGAPORE, Oct 23 (Reuters) - Keppel Land <KLAN.SI>, Singapore's third-largest property developer by market value, said on Tuesday its third-quarter net profit more than doubled on strong home sales and higher office rents in the city-state.

The firm, partly owned by government-linked conglomerate Keppel Corp <KPLM.SI>, said robust housing demand in Asia will continue to fuel its growth in markets such as Vietnam and India.

"The group will continue to identify and seek good investment opportunities in the growth cities of Asia and the Middle East," Keppel Land said in a statement.

The company earned net profit of S$81.8 million ($55.8 million) in the July to September quarter this year, up from S$38.5 million in the same period last year.

It chalked up quarterly revenue of S$381.97 million, 49 percent higher than the third quarter a year ago.

Sales from recently launched residential projects in China also helped drive the firm's revenue.

Earnings from overseas contributed about 31 percent of the group's attributable income, compared with 60 percent for the third quarter 2006, due to Singapore's stronger performance, the company added. Like rival developers CapitaLand <CATL.SI> and City Developments <CTDM.SI>, Keppel Land has benefited from Singapore's resurgent property market, which has seen luxury apartments sold at record prices.

Rental income from Keppel Land's offices, hotels and resorts, as well as revenue from its fund management and property services were also higher in the quarter this year.

The firm said it would continue to benefit from its portfolio of prime office space in Singapore.

Keppel Land controls K-REIT Asia <KASA.SI>, a property trust based on Singapore office buildings.

The company also said it has adopted a new accounting policy in the current financial year, which would reflect changes in the fair values of its investment properties.

Shares of Keppel Land, which ended Tuesday 0.6 percent higher at S$8.20, have risen 19 percent in the year so far but have underperformed CapitaLand's 23 percent share price rise and City Developments' 20 percent gain over the same period. This compares to a 29 percent average increase chalked up by property shares <.PROP> in the year-to-date.

((Reporting by Sebastian Tong; editing by Neil Chatterjee; [email protected]; Reuters Messaging: [email protected]; +65 6403-5661))


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