Keppel Land

[kayhian]

Stronger contributions from its residential projects helped lift Keppel Land's results for the fourth quarter.

The local developer said on Wednesday that it registered a net profit of $567.3 million for the three months to Dec 31, up 7.6 per cent from $527.3 million in the same period a year ago.

Revenue came in at $505.7 million, up 7.2 per cent from $471.9 million a year ago.

Keppel Land said that robust sales driven by pent-up buying demand helped shore up sales in China.

[propertyinvestor]

Property companies can report sterling profits but share price will still go down

[Shrivathsa]

Not necessarily, sometimes, they go up, sometimes they go down.

I recently took a look at how there is a risk free return of 12-18% which can be derived by just riding the dividend bounce phenomenon on Keppel Land.

http://sgx-stocks-sti.blogspot.sg/2014/0...-land.html

It is just a matter of looking for an appropriate entry and exit price.

[Contrarian]

Property companies can report sterling profits but share price will still go down

1. Profits can include real earnings AND revaluations

2. The holdings of their landbanks can go down in value during a slowdown. So the market is factoring this right now... the future of condo sales will slow significantly as the TDSR rules apply.

Remember the TDSR rule is not a COOLING measure.

[kayhian]

Keppel Land's first-quarter net profit fell 9.2 per cent from a year ago to S$87.7 million.

This is despite the company's group revenue rising 37.6 per cent on-year to S$284.9 million in the same quarter.

Keppel Land said in a statement on Tuesday that the lower net profit was due to the absence of a tax writeback recorded last year.

Still, the company said it is seeing higher contributions from its China residential projects.

Overseas net profit rose 63.8 per cent to S$26.7 million, mainly on stronger contribution from residential projects such as The Springdale and 8 Park Avenue in Shanghai.

Meanwhile contribution from its property trading unit was 37.4 per cent lower, at S$35.6 million.

Property investment contribution to net profit rose 8.9 per cent to S$29.3 million, thanks to improved contributions from Keppel REIT and Marina Bay Financial Centre Tower 3.

Fund management profit was up 14.9 per cent to S$13.1 million, due mainly to higher contribution from Alpha Investments Partners.

Going forward, Keppel Land said it will continue to focus in the two core markets -- Singapore and China.

At the same time, it also plans to strengthen its position in the growth markets of Indonesia and Vietnam.

[greengiraffe]

Hip Tiong Bahru awaits new condo
Published on May 17, 2014 1:34 AM
PRINT EMAIL

The much-anticipated 500-unit Highline Residences will come up opposite three completed condominium projects, including Regency Suites (left) and the Twin Regency (right) in Kim Tian Road. -- ST PHOTO: ALPHONSUS CHERN

By Melissa Tan

A REMARKABLE stillness has settled over the private property market in the hip Tiong Bahru district in the past few months.

Resale deals there have slowed to a trickle as most buyers eyeing the area wait with bated breath for the upcoming launch of a new condominium project in Kim Tian Road.

The much-anticipated Highline Residences condo, developed by Keppel Land, will have 500 units on a 99-year leasehold.

Although its launch date and prices have not been announced yet, it is expected to go on sale by the end of next month with an estimated selling price in the range of $1,700 to $1,900 per sq ft.

Consultants said the Tiong Bahru area has a bright investment outlook owing to its convenient city fringe location and the limited supply of new homes there.

The district also appeals to expatriate tenants for its vibrant mix of old and new, they added.

"The character of Tiong Bahru is very unique, with a mix of older and new apartments, eateries, shops and some old-world charm, setting it apart from areas that are too similar in housing forms," said R'ST Research director Ong Kah Seng.

Highline Residences is opposite three completed projects - Regency Suites, Twin Regency and the Central Green condo. All three have not seen any resale transactions since the start of this year.

The 84-unit Regency Suites in Kim Tian Road is freehold and was completed in 2008. The most recent transaction there was in August last year when a 980 sq ft unit was resold for $1.63 million or $1,664 per sq ft (psf), according to caveats lodged with the Urban Redevelopment Authority. The average rent over the past six months was $4.82 psf per month.

Rents were slightly higher at its neighbour Twin Regency, also along Kim Tian Road. The 234-unit freehold project, completed in 2007, posted an average rent of $5.18 psf per month over the past six months. According to caveats, the most recent transaction there was in July last year, when a 1,227 sq ft unit was resold for $2.15 million or $1,752 psf.

The 412-unit Central Green condominium in Jalan Membina is older, having been completed in 1995. Its most recent resale was in December last year at $1.73 million for a 1,292 sq ft unit, or $1,339 psf according to caveats. The project is on a 99-year lease term and posted an average rent of $4.05 psf per month over the past six months.

Mr Ong said resale prices for the relatively newer completed condos in Tiong Bahru could fall to around $1,550 psf by the end of this year given the general weakness in the resale market. An average selling price of around $1,800 to $1,850 psf at a new project would therefore be a "reasonable premium" above resale, he noted.

However, consultants noted that even this price may not be affordable for some investors due to home loan limits imposed in June last year.

melissat@sph.com.sg

[greengiraffe]

http://infopub.sgx.com/FileOpen/KLL.Inve...eID=299986

Another investor presentations...

[Shrivathsa]

I have added in a review of the trading bounce idea I had outlined earlier.

http://sgx-stocks-sti.blogspot.com/2014/...-land.html

Broadly, the idea is valid.

Return on Capital is around 10.8%.

Holding period is around 2-3 months.

The risk of a 18% drawdown, tempered by a 4% yield, so, value at risk is around 14% of investment

[Shrivathsa]

Hip Tiong Bahru awaits new condo
Published on May 17, 2014 1:34 AM
PRINT EMAIL

The much-anticipated 500-unit Highline Residences will come up opposite three completed condominium projects, including Regency Suites (left) and the Twin Regency (right) in Kim Tian Road. -- ST PHOTO: ALPHONSUS CHERN

By Melissa Tan

A REMARKABLE stillness has settled over the private property market in the hip Tiong Bahru district in the past few months.

Resale deals there have slowed to a trickle as most buyers eyeing the area wait with bated breath for the upcoming launch of a new condominium project in Kim Tian Road.

The much-anticipated Highline Residences condo, developed by Keppel Land, will have 500 units on a 99-year leasehold.

Although its launch date and prices have not been announced yet, it is expected to go on sale by the end of next month with an estimated selling price in the range of $1,700 to $1,900 per sq ft.

Consultants said the Tiong Bahru area has a bright investment outlook owing to its convenient city fringe location and the limited supply of new homes there.

The district also appeals to expatriate tenants for its vibrant mix of old and new, they added.

"The character of Tiong Bahru is very unique, with a mix of older and new apartments, eateries, shops and some old-world charm, setting it apart from areas that are too similar in housing forms," said R'ST Research director Ong Kah Seng.

Highline Residences is opposite three completed projects - Regency Suites, Twin Regency and the Central Green condo. All three have not seen any resale transactions since the start of this year.

The 84-unit Regency Suites in Kim Tian Road is freehold and was completed in 2008. The most recent transaction there was in August last year when a 980 sq ft unit was resold for $1.63 million or $1,664 per sq ft (psf), according to caveats lodged with the Urban Redevelopment Authority. The average rent over the past six months was $4.82 psf per month.

Rents were slightly higher at its neighbour Twin Regency, also along Kim Tian Road. The 234-unit freehold project, completed in 2007, posted an average rent of $5.18 psf per month over the past six months. According to caveats, the most recent transaction there was in July last year, when a 1,227 sq ft unit was resold for $2.15 million or $1,752 psf.

The 412-unit Central Green condominium in Jalan Membina is older, having been completed in 1995. Its most recent resale was in December last year at $1.73 million for a 1,292 sq ft unit, or $1,339 psf according to caveats. The project is on a 99-year lease term and posted an average rent of $4.05 psf per month over the past six months.

Mr Ong said resale prices for the relatively newer completed condos in Tiong Bahru could fall to around $1,550 psf by the end of this year given the general weakness in the resale market. An average selling price of around $1,800 to $1,850 psf at a new project would therefore be a "reasonable premium" above resale, he noted.

However, consultants noted that even this price may not be affordable for some investors due to home loan limits imposed in June last year.

melissat@sph.com.sg

I just got a message from the property agent.

The project is called Highline residences.

The 1 bedroom unit is 542 sq. ft.

There are two stacks of 1 bedroom units.

Each stack has 36 storeys.

Units are pool facing.

This is based on draft plans only.

PSF is expected to be around $1900-$2000.

Launch is sometime in Mid August

[safetyfirst]

wow that's seems to be a high psf for a leasehold project, mostly like they are trying to price high at first, then slowly cut prices to bring in sales.