Chairman's Statement
Dear Shareholders
On behalf of the Board, I present the Keppel Land Group report for the year ended
31 December 2009.
Creditable Results in a Difficult Year
Keppel Land weathered one of the worst recessions in history, but ended the year
on a positive note, with the Group posting a profit after tax and minority interests
(PATMI) of $280.4 million, up 23.1% from $227.7 million in 2008, as property markets
in Asia rebounded on the back of improving economic outlook.
Excluding net fair value gain on investment proporties and an acquisition gain,
the Group's PATMI grew 17.3% to $250.2 million, up from $213.3 million a year ago.
Riding on improving markets and restored confidence, PATMI from property trading
rose 22.8% year-on-year to $196.4 million. Sales of lifestyle residential projects
Marina Bay Residences, Reflections and Caribbean at Keppel Bay contributed to
58% of PATMI from property trading. Contribution also came from the progressive
recognition of profits from The Sixth Avenue Residences in Singapore, the residential
township in Chengdu, The Botanica as well as villa projects The Arcadia in Tianjin
and Villa Riviera in Shanghai.
The Group's fee-based fund management maintained a steady performance,
achieving a PATMI of $21.5 million.
Post-rights issue, the Group's return on equity before net fair value gain on
investment properties was 9.4%, slightly lower than the previous year's of 9.7%.
The Board is proposing a final one-tier dividend of 8 cents per share to shareholders.
The dividend payout will amount to about $114.4 million or 45.7% of PATMI of
$250.2 million, excluding net fair value gain on investment properties and the gain
on acquisition of additional interest in K-REIT Asia. As in the previous year,
the Company is offering shareholders a choice of receiving their dividend either
in cash or in the form of shares in the Company under its Dividend Reinvestment
Scheme (DRS). The proposed final dividend is subject to shareholders' approval
at the Annual General Meeting to be held on 23 April 2010, and is expected to be
paid before 18 June 2010.
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