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Revenue decreased by $88.7
million to $773.1 million (2007: $861.8 million) and pre-tax
profit decreased by $30.2 million to $476.1 million (2007:
$506.3 million).
The decrease in revenue was
attributed to the fact that completed projects such as Monterey
Park, No. 7 Draycott Drive, Residences @ Evelyn, Savannah
CondoPark, The Pier at Robertson and The Imperial which
had contributed to 2007 revenue were fully sold by end of
2007. In addition, there was lower revenue recognition from
City Square Residences, The Equatorial and Chelsea Gardens
as well as decline in land bank sale in New Zealand. This
was partially mitigated by revenue accounted for One Shenton,
The Solitaire, Wilkie Studio and Cliveden at Grange and
increased contribution from Botannia. In accordance to the
Group’s policy of equity accounting for the results
of its jointly-controlled entities, whilst revenue from
The Sail @ Marina Bay, Parc Emily, The Oceanfront @ Sentosa
Cove, Ferraria Park and St. Regis Residences, had not been
consolidated into the Group’s total revenue, the Group’s
share of profits arising from these joint venture developments
had been included in pre-tax profit.
Pre-tax profit of 2008 was
lower than 2007 on account of lower contribution from The
Sail @ Marina Bay and St. Regis Residences, partially offset
by increased contribution from The Oceanfront @ Sentosa
Cove. In addition, there was also write-back of allowance
for foreseeable losses for certain development projects
in 2007.
Revenue declined by 6.1%
to $1,866.0 million (2007: $1,986.5 million). The decrease
in revenue was attributable to strengthening of Singapore
dollars, particularly against Sterling Pound. This was however
partially mitigated by improvement in the Group’s
RevPAR based on reported currency.
Pre-tax profit reported a
decline of 14.2% to $245.0 million (2007: $285.4 million)
for 2008. The decrease, which was in-line with the decline
in revenue, was also a result of higher impairment losses
provided on certain assets located in United States, United
Kingdom and India. In addition, impairment losses were provided
on a hotel in Beijing and loan to a joint venture in Bangkok
in 2008. This was however partially mitigated by the gain
of £31.4 million (approximately S$73.2 million) arising
from the forfeiture of non-refundable cash deposit relating
to aborted sale of CDL Hotels (Korea) Limited.
Revenue increased by 22.3%
to $246.5 million (2007: $201.5 million) for 2008 largely
due to improvements in both average rental rates and occupancy.
Pre-tax profit for 2008 had
increased by 2.0% to $136.3 million (2007: $133.6 million)
mainly due to a gain recognised on sale of Commerce Point
in July 2008, higher rental income, recovery of some property
taxes from tenants and increased profit contribution from
CDL Hospitality Trusts. This was partially offset by the
impairment losses of $23.7 million on an investment property
in Japan and land in United States. Included in pre-tax
profit of 2007 was write-back of impairment losses of approximately
$75.0 million.
Revenue, comprising mainly
income from building maintenance contracts, management fee,
club operations and dividend, increased by $3.4 million
to $59.7 million (2007: $56.3 million) for 2008 on account
of higher management fees income, partially offset by lower
dividend income.
Whilst revenue had increased,
a pre-tax loss of $23.6 million (2007: pre-tax profit of
$29.3 million) was reported. This was largely due to mark-to-market
losses on financial assets held for trading being accounted
under the current bearish stock market as compared to gains
recognised in 2007 as well as share of losses from joint
ventures in education services and investment dealing activities.
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