City Developments Quarterly Profit Falls 12% to S$137.6 Million

City Developments Ltd. (CIT), Singapore’s second-largest developer, said first-quarter profit fell 12 percent after a one-time gain wasn’t repeated.

Net income slid to S$137.6 million ($111 million) in the three months ended March 31, from S$156.8 million a year earlier, it said in Singapore exchange statement today. Sales fell 9.8 percent to S$763.5 million.

“The main reason for the drop in revenue was due to the Tagore Avenue warehouse that was disposed-off in the first quarter of 2012,” the company said in the statement.

Singapore’s private residential property price index rose 0.6 percent in the three months ended March 31, the slowest pace in three quarters after government curbs. The latest measures in January, the seventh round of curbs in about four years, included an increase in the stamp duties for homebuyers by 5 percentage points to 7 percentage points.

The company’s shares rose 0.9 percent to S$11.60 today. The results were announced after the close of trade. The stock has declined 9.5 percent this year, the worst performer among 41 developers and REITs on the Singapore property index.

City Developments started marketing two new projects in the quarter, the 912-unit D’Nest condominium and Bartley Ridge, a 868-unit joint-venture development, the company said today. It had rented out 94 percent of the space in its office buildings as of March 31, compared with the national average occupancy of 90.8 percent, it said.

The developer, the biggest shareholder of Millennium & Copthorne Hotels Plc (MLC), said last month its South Korea unit bought a 1,564-square-meter (16,834-square-foot) site adjacent to its Millennium Seoul Hilton Hotel for a new hospitality property.

City Developments opened its 240-room W Singapore Sentosa Cove hotel on Oct. 20.

To contact the reporter on this story: Pooja Thakur in Singapore at pthakur@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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