Group Quarterly Results

Sales and profits for all the quarters in 2008 were lower than the corresponding periods. The lower performance was mainly due to completion of projects such as Urbana and The Belvedere in Singapore as well as The Waterfront and The Seasons in China and Villa Riviera in Vietnam. In addition, Group share of profits from Marina Bay Residences and Reflections at Keppel Bay in 2007 was higher than in 2008.

Financial Reporting Standard 40 (Investment Property) ("FRS 40") became effective from 1 January 2007. Following its adoption, fair value gains on the Group's investment properties amounting to $457.1 million was taken to the Group profit before tax for the first time in 4Q2007. In comparison, the fair value gain on investment properties in 4Q2008 was $4.5 million. However, the fair value gain in 2007 was partly offset by impairment losses of $89.3 million on the Group's two hotels in Myanmar and exchange losses pertaining to prior years' investments in Indonesia.

Performance for 4Q2007 was further boosted by a gain of $235.2 million from the restructuring of the ownership of One Raffles Quay to K-REIT Asia.

Accordingly, 4Q2007 reported the highest pre-tax profit and attributable profit, compared with all other quarters in the two years.