Keppel Land’s profit slipped 15.1% in FY14 on back of lacklustre property sales

Expect another challenging year ahead.

Keppel Land’s full-year net profit slipped 15% to $752.5m, on back of lower fair value gain on investment properties which was estimated to be $100m lower than in 2013.

Keppel Land cautioned that 2015 is likely to be another challenging year as the economic conditions in its core markets of Singapore and China are not expected to improve significantly.

“Singapore’s economy has been affected by an uneven global recovery. The property cooling measures are unlikely to be lifted soon. However, we expect demand for well-located and well-planned residential projects, such as our Highline Residences, located in Tiong Bahru, to hold up better,” stated Keppel Land.

Keppel Land has proposed a final dividend of 14 cents per share, higher than 13 cents paid last year, translating to a 39% payout ratio.