(RTTNews) - China Housing and Land Development, Inc. (CHLN: News ) Wednesday posted a substantial rise in third-quarter profit, helped by increases in total floor area sold and average selling prices as well as a non-cash gain associated with the revaluation of derivatives and warrants.

The Xian, China-based real estate developer said third-quarter net income attributable to the company increased 779% to $12.71 million or $0.24 per share from $1.45 million or $0.04 per share a year ago.

Third quarter net income included a $5.7 million or $0.17 per share non-cash gain associated with the revaluation of derivatives and warrants. Excluding this gain, non-GAAP net income was $7.2 million or $0.06 per share.

Two analysts polled by Thomson Reuters expected the company to report earnings of $0.08 per share for the third quarter. Analysts' estimates typically exclude special items.

Total third-quarter revenues increased 215% to $23.8 million from $7.5 million a year ago. Analysts had a consensus revenue estimate of $20.40 million for the quarter.

Pingji Lu, China Housing's Chairman commented, "We are pleased with our results for the third quarter as we continued to see stabilized sales trends and higher average selling prices, most notably with our two major projects-JunJing II Phase One and Two."

Revenue from sale of properties surged to $22.7 million from $7.5 million, while revenue from other income rose to $1.1 million from $70 thousand in the third quarter in 2008.
Total gross floor area sales were 32,436 sq. meters at an average selling price of RMB 5,001 per square meter, much higher than 11,069 sq. meters in the third quarter of 2008.

Total third-quarter costs and expenses increased to $14.8 million from $6.5 million year-on-year. Gross profit margin for the third quarter increased to 31.2% from 19.5% in the same period of 2008, reflecting an improvement in market conditions.

Operating income was $4.0 million compared with a net loss of $3.2 million in the third quarter of 2008.

For the nine months ended September 30, net income attributable to the company rose to $3.5 million or $0.11 per share from $2.6 million or $0.07 per share a year ago. Nine-month total revenues increased to $60.2 million from $25.5 million a year ago.

Looking ahead, the company said that fourth quarter gross floor area sales are expected to range from 46,000 to 48,000 square meters, and contract sales are expected to reach US$32 million to US$34 million.

To receive FREE breaking news email alerts for China Housing and Land Development, Inc. Inc. and others in your portfolio

 1   2   Next Page