CapitaLand posts healthy quarter

CapitaLand Limited has today announced a second half after tax group profit of S$464 million – 5.8 per cent up on the same period last year.

The property giant, which derives 80 per cent of its revenue from Singapore and China, has a portfolio including shopping malls, serviced apartments, office blocks and hotels trading under a variety of banners.

In a statement, CapitaLand said its operating profit was 87.6 per cent higher than the same quarter last year on account of gains from the change in the use of development properties for sale in China, namely The Paragon (Tower 5 & 6) and Raffles City Changning (Tower 3). These projects are at prime locations in Shanghai and the group has changed its business plans for these projects from strata-sale to leasing as investment properties.

The result was impacted by an impairment for a development project in China.

Revenue increased by 17.8 per cent on the back of higher contribution from development projects in China, partially offset by lower revenue from development projects in Singapore and Vietnam.

The group says it recorded higher rental revenue from its shopping mall and serviced residence businesses during the quarter.

Lim Ming Yan, president & group CEO, said CapitaLand’s well-balanced portfolio of investment properties and residential projects will continue to generate recurring income and trading profits for the group.

“While CapitaLand remains focused on Singapore and China as core markets, it is exploring opportunities to expand in growth markets such as Vietnam, Indonesia and Malaysia. CapitaLand has built a significant scale across diversified asset classes and strong expertise in integrated developments, shopping malls, serviced residences and capital management. Coupled with its technology efforts, CapitaLand continues to strengthen its position for growth,” he said.