• Improvement felt across development and recurrent operations
• Leveraging on improved sentiment, bring forward launches
• Maintain Hold with TP of $2.24

Results ahead of expectations.
Keppel Land reported a 10% yoy rise in net profit to $58.2m on a 34% jump in revenue to $250m. The better performance was due to strong development profits as the group moved 24 units at Park Infinia and Tresor in Singapore in Q2. It sold a further 1,020 units in Botanica and Central Park City in China, surpassing the 420 units transacted in 1Q09. Recurrent income grew on the back of higher leasing income and contributions from Kreit. No revaluation was done in 2Q09.

Bringing forward Spore launches.
The group will roll out 71 units at the earlier delayed Madison Residences and The Promont in 2H09, as market conditions continue to improve. The launch pipeline for its overseas projects is relatively unchanged from 1Q09, with 2,194 units to be marketed in China and other overseas countries this year. Recent tie-up with KepCorp on the Tianjin Eco City project has widened the group’s China pipeline to close to 28,000 units and should be accretion when launched. On the leasing
front, demand and rental rates for office space remain weak, however, leasing enquiries had picked up in recent weeks. MBFC1 & 2 are still 66% and 55% pre-committed respectively. The group is also looking for acquisition opportunities given its healthier balance sheet of 0.23x gearing after the rights issue.

Raising estimates by 12%.
We have raised our FY09 and FY10 earnings by 12% to $219m and $236m respectively to factor in the earlier launch of the 2
Spore projects. RNAV is lifted to $2.98 after adjusting for the Tianjin Eco City project. Share price had appreciated by 24% over the past 2 weeks on the back of the improved high-end property market sentiment. Maintain Hold with TP of $2.24.