SOHO H2 net slides 47 pct, sounds alarm over property

Property developer SOHO China Ltd posted a 47 percent drop in second-half net profits on Tuesday as a strategic shift toward renting properties instead of selling them reduced revenues.

The Beijing-headquartered developer also expressed concern about the rising land prices in China, which it said was squeezing margins.

SOHO China's net profit for July to December 2013 was 5.3 billion yuan ($862 million), according to Reuters' calculations based on full-year results.

That beat the median forecast of 1.99 billion yuan by 15 analysts, as the company locked in the sale of a Beijing plaza earlier than expected.

The figure compared with a profit of 2.09 billion yuan in the previous six months and 9.97 billion a year earlier.

SOHO China announced in 2012 it was changing its business model to build-and-hold from build-and-sell in order to maintain a more stable income stream from rents rather than sales.

In its earning statement, the company said it was worried about "troubling signs" in the residential real estate market, saying land prices had become too expensive.