CapitaLand reports full-year profits 8.7% lower at $849.8 million

Property heavyweight Capitaland on Wednesday said that it plans to keep its focus on its core markets of Singapore and China to grow its business.

It also reported profits for the full year ended Dec 31 which came in at $849.8 million, down 8.7 per cent from the corresponding period a year ago.

Mr Lim Ming Yan, president and group chief executive of CapitaLand reiterated that the firm will develop more integrated and mixed-use developments in those markets to leverage its capabilities in developing malls, homes, offices and serviced apartments.

He added in a statement that prospects in China, where it has operated for 20 years, are optimistic as urbanisation and growth in income drive domestic demand.

Mr Lim was speaking at CapitaLand's full-year results briefing at Capital Tower. The profit dip came despite a 20.5 per cent surge in group revenue to $3.98 billion for the same period, buoyed by stronger contributions from its residential projects in China and Singapore.

"While results for the 2013 financial year were affected by several one-off losses, the overall business has generated significant improvements in operating net profit, which rose 42.9 per cent," said Mr Lim.

CapitaLand had suffered a loss on its divestment of a 20 per cent stake in Australand last year, which amounted to $120.8 million. If this was excluded, net profit for the 12 months to Dec 31 would have been $970.6 million, up 4.3 per cent from the same period a year ago.

However, sales from its residential units in Singapore had almost doubled to 1,260 units from the previous year, raking in $2.44 billion for the group. Revenue recognition from its Bedok Residences, Sky Habitat and Urban Resort condominium also underpinned CapitaLand's turnover.

Earnings per share were 20 cents for the 12 months to Dec 31, down from 21.9 cents a year ago. Net asset value per share was $3.78 as at Dec 31, up from $3.55 as at Dec 31, 2012. The company also proposed an ordinary dividend of eight cents per share for the full year.