April 19 (Bloomberg) -- Keppel Land Ltd., the property developer partly owned by the world’s largest builder of oil rigs, had its biggest gain in three weeks in Singapore trading after profit rose 70 percent on increased sales of apartments.
Keppel Land shares rose 1.8 percent to S$3.40 at the close of trading. Net income climbed to S$141.9 million ($113.4 million) in the three months ended March 31, from S$83.3 million a year earlier, the company said yesterday.
Homes sales in the quarter ended March increased to 6,682 units, the highest since September 2009, as low interest rates and high liquidity boosted demand, according to data from the Urban Redevelopment Authority. Keppel Land also recently completed Reflections at Keppel Bay, a residential project designed by architect Daniel Libeskind.
“Keppel Land reported a 70 percent growth in earnings mainly due to the recognition of profits from completed units at Reflections at Keppel Bay,” Wilson Liew, Singapore-based analyst at Kim Eng Securities Pte, said in a note to clients today. Liew reiterated a “buy” on the stock and recommended to invest in the stock before it becomes ex-dividend on April 24 for its 20 cents a share payout.
Keppel Land’s home sales in Singapore were primarily from its projects in the suburbs in Sengkang and Jurong, it said in its annual report to shareholders. The company said yesterday it sold more than 90 homes in the quarter, and has set aside 150 units at the Reflections development for corporate residences to tap demand for waterfront apartments.
“The strong performance was largely due to bumper contribution from Reflections at Keppel Bay following the handover of completed units to buyers who bought under the deferred payment scheme,” Keppel Land said in the statement, referring to a sales incentive offered earlier.
In January, Keppel Land said it acquired a 51 percent stake in a commercial project in Beijing’s Chaoyang central business district with a gross floor area of about 100,000 square meters.
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