PROPERTY DEVELOPMENT

Revenue surged by $376.8 million (or 77.7%) to $861.8 million (2006: $485.0 million) while a pre-tax profit has more than doubled to $506.3 million (2006: $225.8 million).

The increase in revenue is mainly attributable to contributions from Botannia, Chelsea Gardens, Tribeca and higher revenue generated from Butterworth 33, City Square Residences, 7 Draycott Drive, The Equatorial and The Imperial. In accordance to the Group’s policy of equity accounting for the results of its jointly-controlled entities, whilst revenue from The Sail @ Marina Bay, Parc Emily, The Oceanfront @ Sentosa Cove, Ferraria Park, St. Regis Residences, Cuscaden Residences and Edelweiss Park has not been consolidated into the Group’s total revenue, the Group’s share of profits arising from these joint venture developments has been included in pre-tax profit.

The increase in pre-tax profit, which is in-line with the improvement in revenue, is also attributed to profit recognised for The Oceanfront @ Sentosa Cove, higher contributions from The Sail @ Marina Bay, Parc Emily and St. Regis Residences.

HOTEL OPERATIONS

Revenue improved by $140.1 million (or 7.6%) to $1,986.5 million (2006: $1,846.4 million). The increase in revenue is a result of higher Group RevPAR achieved on the back of buoyant market conditions, particularly in New York, London and Singapore.

Pre-tax profit decreased by $111.2 million to $285.4 million (2006: $396.6 million) mainly due the absence of one-off gain of $150.9 million on the disposal of long leasehold interest in four Singapore hotels in the third quarter of 2006 to CDL Hospitality Trusts (CDLHT) and increase in impairment losses provided on hotels, partially mitigated by the improved performance of hotel operations.

RENTAL PROPERTIES

Revenue increased by 19.9% to $201.5 million (2006: $168.1 million) as a result of general improvement in average rental rates and occupancy.

Pre-tax profit has accelerated to $133.6 million (2006: $30.0 million) mainly due to improvement in revenue and write-back of impairment losses on investment properties previously provided. It is also further enhanced by the profit contribution from CDLHT.

OTHERS

Revenue, comprising mainly income from hotel management, building maintenance contracts, project management, club operations and dividend income, has improved by 18.8% to $56.3 million (2006: $47.4 million) due to higher dividend income and management fees earned.

Pre-tax profit for this segment decreased by $10.5 million to $29.3 million (2006: $39.8 million) due to lower mark-to-market gain recognised from financial assets held for trading and exchange loss arising from foreign currency denominated loans.