City Developments Limited recorded a decline in its profits by 8.3% in Q3 to $156.1m from $170.3m recorded in a similar period in 2016.
The fall was mainly attributed to the lack of a divestment gain that was present in 2016 from the disposal of 52.52% stake of CDL in City e-solutions and the lack of revenue and profit from Lush Acres that is now fully sold.
CDL revenue slipped by 6.5% in Q3 to $863.1m from $922.8m recorded in Q3 2016.
There was a fall in other operating income by 22% in Q3 to $39.2m. The fall was partially eased by profit earned from an office-building disposal in Osaka in the third quarter.
Without the one-off items, the CDL’s PATMI for the 9 months would have gone up by 3.5%.s
There was a decrease in administrative expenses by 4.8% in Q3 to $127.6m mainly because of the lower salaries and associated expenses.
Finance income rose by 42.6% in Q3 to $13.3m from $9.1m recorded in 2016. The income was attributed to higher interest revenue from the fixed deposits, more gain in fair value on the financial assets held for trading as well as the interest income from notes that the group subscribed in Q4 2016.
The associates share of profit increased by 17.1% in Q3 to $7.5m. The rise was attributed to better performances from properties sale with more residential units at the Millennium Waterfront Project being handed over to buyers.
The cash & cash equivalents were at $3.32b as at the end of September.
“The local property market has brighter prospects as the economy of Singapore is on a recovery," says executive chairman CDL, Kwek Leng Beng.
He added that the residential property sector that has had a number of years of subdued market conditions since 2007’s peak would experience increased activity fueled by the positive sentiment of pent-up demand and strengthened by the current momentum.
“CDL with now mainly focus on investments and new acquisitions both overseas and locally given its strong balance sheet. To date, it has $4.2b worth of investments and acquisitions since 2014 on track to achieve the $5 billion target by the end of 2018,” said CDL CEO Grant Kelley.