Topping up the land bank

PUBLISHED : Friday, 07 October, 2005, 12:00am
UPDATED : Friday, 07 October, 2005, 12:00am

Sino Land says it will continue to acquire land to maximise its future earnings potential after achieving a record high full-year profit of $5.22 billion.

In view of an optimistic outlook for the property market, chairman Robert Ng Chee Siong said the company had bought 10 plots of land for residential, office and retail developments, comprising 8.08 million square feet of gross floor area, during the year under review.

The company had a total land bank of 27.8 million square feet gross floor area as of June 30. About 17.81 million square feet is designated for property development and more than 86 per cent of that will be developed for residential use over the next five to six years.

After the land acquisition, the group's gearing was 22.7 per cent as of June 30.

This year, the company would continue to replenish its land bank, he said.

On the back of the property market rebound and gains from revaluations under new accounting policies, the company's net profit soared 270.87 per cent from $1.4 billion the previous year.

Excluding the $2.7 billion from revaluation of investment properties, the developer's net profit rose 79.1 per cent to $2.52 billion, far higher than the market's forecast of 50 per cent growth.