SINGAPORE (Nov 12): Property developer and hotel operator City Developments reported a 4.7% increase in earnings for the 3Q14 ended Sept to $127.2 million from $121.5 million in 3Q13.

For the quarter, the group achieved a 58.3% increase in revenue of $1.3 billion, up from $834.9 million a year ago.

City Developments said the higher sales were boosted by the completion of the 602-unit Executive Condominium (EC), Blossom Residences, in 3Q14.

Profits were also booked in from H2O Residences, Jewel @ Buangkok,[email protected] Quay and Buckley Classique which obtained its TOP in August 2014. Maiden profit was also realised from The Venue Residences and Shoppes.

Under the prevailing accounting standards, profit for this EC was recognised in entirety only upon obtaining Temporary Occupation Permit (TOP).

Hotel operations segment was the second highest contributor, despite challenges and economic uncertainties in some key markets.

In 3Q14, Millennium & Copthorne, in which the group holds a 60% interest, reported an increase in revenue of 6.2% to £215.9 million ($443 million) from £203.3 million a year ago.

The segment also benefited from the strong revenue and profit performance of its newly acquired hotels, namely The Chelsea Harbour Hotel in 1Q14 and Novotel New York Times Square in 2Q14, as well as from a stronger performance by its recently refurbished hotels, especially Grand Hyatt Taipei.

Despite the broad improvement, the developer was cautious about prospects, noting that residential property prices in Singapore have yet to stabilise and that "there are no signs of any rebound".

 "In the short run, the various government cooling measures, especially the total debt service ratio framework and additional buyer stamp duty, will continue to weigh heavily on the market, impacting both sales volumes and prices of residential units," it said in a statement.

"Average residential rents across all market segments, particularly the high-end segment, are on the decline, coupled with a weak secondary market.

"From the group’s experience, having gone through many property cycles, if this trend continues, with prices dipping more, some mortgage borrowers affected by lower rentals, may have difficulty servicing their loans, possibly leading to forced fire sales."

City Developments ended the day 0.2% lower at $9.36.