CDL Q3 earnings rise 4.7% to S$127.2m

CITY Developments Ltd (CDL) has posted net earnings of S$127.21 million for the third quarter ended Sept 30, 2014, up 4.7 per cent from the same year-ago period. Revenue rose 58.3 per cent to S$1.32 billion.

In the first nine months of this year, CDL's net earnings shrank 17.1 per cent to S$384.74 million despite revenue surging 20.3 per cent to S$2.92 billion.

CDL said the earnings drop was due to absence of significant divestment gains from non-core investment properties as compared to the corresponding period, which had accounted for gains largely from the sale of 100G Pasir Panjang and strata units in Citimac Industrial Complex, Elite Industrial Building I, Elite Industrial Building II and GB Building.

"Excluding such divestment gains from YTD Sept 2013, on a like-for-like comparison, the group's core earnings would have increased by 25.5 per cent for YTD Sept 2014," CDL said in its results statement.

The group's net gearing ratio as at Sept 30, 2014, was 36 per cent, with interest cover at 11.0 times for YTD Sept 2014. This does not factor in any revaluation gains in investment properties but takes into account the consolidation of CDL Hospitality Trusts and acquisition of new hotels by the group.

Giving an update on its UK projects, CDL said that planning approval has been secured on the projects in Belgravia, Knightsbridge (at 32 Hans Road), Reading and Croydon.

"The group expects to secure the consents for 90-100 Sydney Street in Chelsea and the Knightsbridge carpark (at 28 Pavilion Road) in Q1 2015," it added.

Third-quarter earnings per share rose 4.5 per cent to 14 Singapore cents. Net asset value per share rose to S$8.79 as at Sept 30, 2014, from S$8.50 as at Dec 31, 2013.

On the stock market, the counter closed two cents lower at S$9.36 on Wednesday. CDL released its results after trading.