Net profit lower at $133.8 million for the first half of 2011, mainly from decline in contribution from property trading

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1 PRESS RELEASE Keppel Land s Financial Highlights for the Half Year Ended 30 June July 2011 Earnings Muted by New Accounting Policy Net profit lower at $133.8 million for the first half of 2011, mainly from decline in contribution from property trading Fall in property trading magnified due to revised accounting treatment Contribution from fund management grew 52% to $23.9 million K-REIT Asia and Alpha Investment Partners made acquisitions and divestments Keppel Land reported net profit of $133.8 million for the first half of 2011, compared with the restated net profit of $201.7 million for the same period in The lower net profit was due primarily to a fall in contribution from property trading attributed to the adoption of a revised accounting policy 1. The decline was partly mitigated by stronger contribution from fund management income and a one-off $24.4 million gain on the divestment of interest in Keppel Digihub in the first quarter of Net profit from property trading declined to $65.1 million for the first half of 2011, as more overseas projects such as Villa Riviera and phases of The Botanica, Central Park City and Serenity Cove in China were completed in the same period last year. In contrast, only one overseas project, Elita Promenade in Bangalore, India was completed in the first half of The first half of 2010 also saw substantial net profit contribution from the completion of units sold under the Deferred Payment Scheme at Marina Bay Residences in Singapore 1. Fee income from fund management grew 52% to $23.9 million, which accounted for 18% of Keppel Land s net profit, with higher acquisition and management fees earned by K-REIT Asia Management and Alpha Investment Partners. This is the best half-year performance from the Group s fund management vehicles over the past five corresponding periods. 1 From 1 January 2011, the Group adopted the INT FRS 115 under which revenue and profit from overseas trading projects are recognised only on full completion. With the issuance of a clarification note by the Accounting Standards Council on 7 June 2011, the Group has also revised its accounting treatment to recognise revenue and profit upon completion for Singapore trading projects, for units sold under the Deferred Payment Scheme. The change has been applied retrospectively. This new accounting standard will result in profit recognition that is lumpy, creating more volatility in the Group s earnings. Please refer to Keppel Land Limited s Second Quarter 2011 Financial Statements Announcement for details.

2 Financial Highlights ($m) Half Year Ended 30 Jun Jun 11 (Restated) Quarter Ended 30 Jun Jun 10 (Restated) Turnover EBITDA Pre-tax Profit 176.9* Net Profit 133.8* *Includes a $24.4m gain on divestment of interest in Keppel Digihub Figures for the quarter and half year ended 30 June 2010 have been restated with the adoption of the mandatory new accounting policy. Home Sales Contracted on Recent Cooling Measures In Singapore, the measures introduced in January 2011, such as the increase in sellers stamp duty to a maximum of 16% on property re-sold within the first year, moderated new home sales. According to URA s flash estimates, 8,157 units were sold in the first half of 2011 compared with 8,413 units in the same period last year. The growth in residential prices in the second quarter of 2011 moderated further, growing 1.9% compared with 2.2% in the last quarter. Keppel Land sold about 160 homes in Singapore in the first half of 2011, mainly from continuing good sales at the Lakefront Residences. The development has achieved a 95% take-up of the 621 units launched in eight months. To ride on the selective demand for well-located suburban homes, the Group intends to launch its residential development near the Sengkang MRT station later this year. Rental rates for the office market continued to climb. According to CB Richard Ellis, Grade A and prime rents grew by 2.9% and 2.3% respectively from the previous quarter to $10.60 psf and $8.80 psf respectively. The demand for office space is expected to remain healthy for the rest of Keppel Land s prime Grade A office developments in the Central Business District (CBD), Marina Bay Financial Centre Phase 2 and Ocean Financial Centre (OFC) Phase 1 comprising the office building, continue to see interest from prospective tenants. OFC Phase 1 obtained Temporary Occupation Permit in April 2011 and the occupancy rate currently stands at 82.6%. OFC Phase 2, comprising three basements and seven podium parking levels with ancillary underground retail link, is expected to be completed in the second half of Fund Management Vehicles Made Acquisitions and Divestments The Group s fund management vehicles remain focused on making acquisitions. K-REIT Asia is expanding its portfolio with the proposed acquisition of a 50% interest in 8 Chifley Square, a prime office development in Sydney, Australia. Completion of the 30-storey CBD office tower is expected to be in the third quarter of Alpha Core Plus Real Estate Fund, a fund managed by Alpha Investment Partners (Alpha), has divested NorthTech at Woodlands and Nordic European Centre at International Business Park for $72 million and $ million respectively. Another of Alpha s fund, Alpha Asia Macro Trends Fund recently acquired interest in a portfolio of luxury apartments in Shanghai, China.

3 Entry into commercial developments In China, there is still demand for township and eco homes despite recent anti-speculation measures dampening transaction volumes. Central Park City in Wuxi sold more than 200 units, bringing total take-up to 88% of the 1,313 launched units. Seasons Park at Tianjin Eco-city sold about 130 units, which translates into a take-up of 75% of the 787 launched units. The Group sold about 400 units in China in the first half of Potential buyers remain on the sidelines as they continue to monitor market reaction to the cooling measures. Keppel Land China (KLC) has acquired a prime 7.2-hectare site in Nanxiang Town, in Jiading District in Shanghai for residential development. This brings Keppel Land s total housing pipeline to more than 41,000 homes in China. In April 2011, the Group held the groundbreaking ceremony for Seasons City in Tianjin Eco-city, KLC s first mixed-use development featuring 162,000 sm of office and retail space. Keppel Land will continue to look out for opportunities to make further inroads into commercial property developments in China. Sales in Vietnam and Indonesia both improved year-on-year. In Vietnam, unit sales tripled for the first half of this year to over 160 homes sold, mostly from Riviera Point, compared with about 50 homes sold in the same period last year. Riviera Point, a waterfront integrated lifestyle development in District 7 of Ho Chi Minh City, was launched in January this year. In Indonesia, more than 150 homes at Jakarta Garden City were sold in the first half of 2011, compared with about 120 homes sold in the same period last year. As at end-june 2011, some 775 units, or about 88% of the 881 launched units, have been sold. In May 2011, Jakarta Garden City became the first residential development in Indonesia to be conferred the Green Mark Gold Award by the Building and Construction Authority of Singapore, bringing the Group s total Green Mark Award accolades to-date to 24. Disclaimer This release may contain statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. You are cautioned not to place undue reliance on such statements, which are based in the current views of Management on future developments and events.

4 KEPPEL LAND LIMITED OPENING REMARKS BY GROUP CEO KEVIN WONG HALF YEAR ENDED 30 JUNE 2011 Welcome to Keppel Land s half year results presentation. For the first half of 2011, our net profit decreased by 33.7% to $133.8 million, compared with first half last year. This decrease is due to the adoption of the revised Financial Reporting Standards which recognises revenue and profit upon project completion for overseas trading projects and those in Singapore sold under the deferred payment scheme. If it were not for changes in the Reporting Standards, the net profit would be an increase of 22.6% over 1H Interest in Suburban Homes Remains In Singapore, government measures and impending supply from government land sales have reduced the sales of private homes in the first half of the year. However, homes in selective suburban region and near MRT stations will continue to attract interest. Our project in the Jurong Lake District, The Lakefront Residences which comprises about 630 units, is almost fully sold, just eight months after its launch last November. To tap on demand for suburban homes in future growth areas, we acquired a 1.8-hectare site at Sengkang. We plan to launch the first phase of the 620-unit project later this year. Office Rentals Continue to Grow Keppel Land s Ocean Financial Centre (OFC) office building has obtained Temporary Occupation Permit in April this year and several tenants have moved in and started operations. Grade A office rents grew by about 7% in the first half of We continue to see interest from prospective tenants for OFC and Marina Bay Financial Centre Phase 2 due to their excellent quality and prime location in Raffles Place and Marina Bay respectively. We are currently in discussion with potential tenants for both buildings. Good Acquisition Opportunities Overseas In China, sales volume and prices have moderated due to the property cooling measures. Buyers have also stayed at the sidelines in response to the possibility of more measures being implemented. With credit tightening, developers with strong balance sheet are more resilient than developers in weaker financial position. This presents a window of opportunity for Keppel Land to acquire sites. Keppel Land China recently acquired a prime residential site in a mature satellite town in Shanghai at Nanxiang Town. The 7.2-hectare site located near a subway train station will provide about 1,000 homes. Our first eco-homes in Tianjin Eco-City, Seasons Park and township project in Wuxi, Central Park City, have continued to see demand. The Group is looking to make further inroads into commercial developments, in addition to Seasons City, a mixed-use development with 162,000 sm of office and retail space in the Start-Up Area in Tianjin Eco-City. 1

5 In Vietnam, our newly launched project Riviera Point in District 7 achieved good sales. Jakarta Garden City in Indonesia has also chalked up strong sales. It enjoys the distinction of being the first residential development in Indonesia to achieve the Building and Construction Authority s Green Mark Gold Award. Good Performance for Fund Management Net profit from our property fund management grew 52% from first half of last year to $23.9 million. This accounts for 18% of Keppel Land s net profit and it is the best half-year performance from the Group s fund management vehicles over the past five corresponding periods. K-REIT Asia recently acquired a 50% stake in 8 Chifley Square, a 30-storey office tower currently under development in Sydney s CBD. It is scheduled to be completed in the third quarter of The Group s private property fund vehicle Alpha Investment Partners (Alpha) has also made several acquisitions. It added a block of luxury apartments in the Luwan District in Shanghai to its portfolio of investments, under its Alpha Asia Macro Trends Fund (AAMTF). During the quarter, NorthTech and Nordic European Centre, which are in Alpha Core Plus Real Estate Fund, were sold and achieved good returns. With all Alpha s funds performing above their target returns and with increasing opportunities in the Asian markets, Alpha will launch a follow-on fund. Going Forward We will pursue opportunities for strategic land acquisitions that will strengthen our position as a leading residential and commercial developer in Singapore and overseas. In the area of corporate transparency, we are happy to say that Keppel Land was recently ranked a joint third position out of 660 companies in the Governance and Transparency Index We will continue to maintain our commitment to high standards of corporate governance and transparency. 2