INVESTMENT PROPERTIES
The Group’s principal investment properties are Ocean Building, Ocean Towers, Keppel Towers,
GE Tower and Prudential Tower in Singapore, Saigon Centre and International Centre in Vietnam and
Wisma BCA in Indonesia. The rental income from these properties is sensitive to changes in their
occupancies and the rental rates for lease renewals.
Assuming that average rental rates are maintained, a full year’s impact on rental income for every 1%
change in the occupancies of the above mentioned properties is approximately $0.6 million.
In respect of committed leases and lease renewals, a full year’s impact on rental income for every 10%
change in average rental rates resulting from the new rates negotiated is about $7.5 million.
TRADING PROPERTIES
The Group’s profit from property trading is sensitive to actual sales achieved and the percentage of
physical completion recognised during the year.
Based on the actual sales contracts signed as at 31 December 2002, the incremental impact on Group
pre-tax profit for every 5% of physical completion is about $0.9 million.
For every additional 1% of sales achieved for projects which have been launched, the additional
contribution to Group pre-tax profit is an estimated $2.0 million. This is based on physical completion
and sales projected for the year, and the completed properties available for sale which the Group had
at end-2002.
