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Keppel Land (KepLand) surfed the surging property wave across Asia to land a full-year net profit of $200.3 million, 28.6 per cent up on 2005.
Turnover also rocketed, leaping 61.7 per cent to $948 million with higher revenues from property sales in Singapore, China, India and Vietnam.
It made a net gain of $46 million from collective property sales after deducting impairment provisions, largely for its hotels in Myanmar and Indonesia.
Overseas earnings accounted for 64 per cent of group profit before the collective property sale gain, up from 59 per cent last year.
The rest of the earnings, which came from Singapore, fell 11.2 per cent to $56.2 million due to lower rental income as four office buildings were sold to K-Reit Asia last year.
KepLand sold 2,500 units overseas last year and doubled Singapore sales to 1,200 units. This was largely boosted by the sell-out 428- unit Marina Bay Residences, where a penthouse set a record price of $3,450 per sq ft in the middle of last month. Its 175-unit Sixth Avenue Residences sold out not long after.
Its largest project this year is the 1,129-unit Reflections at Keppel Bay, where it aims to launch 500 units.
KepLand is benefiting from a residential property upturn here led by the luxury end and supported by foreign buyers, as well as a buoyant office market.
Managing Director Kevin Wong said this year should still be a good one for the local residential market and the firm will continue to buy land, albeit selectively.
"We will probably be looking at the mid-tier market which has not appreciated as much as the high-end market," he said.
He also said the group and its Hong Kong partners are "looking into the option to acquire phase two or the rest of the land at the Business and Financial Centre will decide very soon". Its Marina Bay Financial centre (phase 1) will be ready in 2010.
KepLand will launch new townships and residential projects in places such as China, India and Indonesia. "Asia’s housing market remains favourable on the back of robust economic growth and continuing inflow of global funds into Asian real estate," said the group in a statement.
It remains optimistic about China's longer-term potential.
KepLand plans to launch two new funds this year, It added that profit growth is expected to continue.
It is recommending a final dividend of six cents a share to be paid on May 22 compared with five cents a share for 2005.
Earnings per share were 27.9 cents, up from 21.8 cents a year ago. Net asset value per share was at $2.21, down from $2.35 a year ago.
Fourth-quarter profit rose 46 per cent to $81.2 million while revenue was up 85 per cent to $341.9 million.
KepLand shares dropped 40 cents to close at $7.50 yesterday.
ON THE CARDS: KepLand is set to continue benefiting from the residential property upturn here with its largest project this year, the 1,129-unit Reflections at Keppel Bay
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