But revenue dipped 6% to $34.7m.
According to a release, the 6% decrease of $34.7 million in the Group’s revenue was due to the closure of Pan Pacific Singapore hotel for major refurbishment from April to August 2012, which resulted in a revenue drop of $55.8 million.
Sales of trading properties at $269.7 million was higher by $19.0 million (8%) with revenue recognition of The Excellency (Chengdu) residential property project, partially offset by lower contribution from The Trizon project which was completed in May 2012.
Gross rental income from investment properties remained stable at $236.8 million (2011: $237.0 million).
Share of results of associated companies totalling $89.0 million included share of fair value gain on investment properties held by associated companies of $45.6 million (2011: $20.3 million).
Based on valuation by professional valuers as at 31 December 2012 on the investment properties held by subsidiary companies, a fair value gain of $165.4 million (2011: $126.4 million) was credited to the income statement.
Despite lower revenue, overall net profit from operations increased by $3.9 million (2%) to $218.6 million due mainly to higher contribution from trading property sales which have a higher profit margin, substantially offset by the drop in contribution from Pan Pacific Singapore hotel, net of non-controlling interests.
After adding the fair value gain on investment properties, net of non-controlling interests, of $188.5 million (2011: $138.8 million), the Group's net attributable profit was
$407.1 million (2011: $353.6 million).
Net profit was S$456,690,000, a 13% jump compared to last year's S$405,845,000.
Office leasing market in 2012 was competitive due to slower growth in the economy and significant supply of new and secondary office space. Leasing demand of retail space, especially in the suburban malls have remained firm with rising population and high employment. Hotel room bookings remained strong due to visitor growth.
The sale of trading properties had risen along with the residential property market buoyed by low interest rate and high liquidity environment. After 5 months of extensive and intensive refurbishment, the Pan Pacific Singapore hotel was reopened in September.
The outlook of the office market will remain competitive in view of significant new offices in the pipeline and the slow economic recovery. Despite expected healthy tourist arrivals and high employment, the retail and hospitality sectors will be affected by prevailing manpower shortage and rising business costs.
The cooling measures introduced by the government in January 2013 to curb rising residential property price will impact transactions both in volume and pricing. The continuing low interest rates and high employment may serve to moderate this impact.
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