Fair value gains and investment returns boosted third-quarter earnings at developer CapitaLand.

Net profit came in at $316.95 million for the three months to Sept 30, up 28.1 per cent on the same period a year earlier.Revenue was $1.5 billion, up 9.7 per cent, the company reported yesterday.

The fair value gains from investment properties came from Golden Shoe Car Park, the serviced residence component of Funan integrated development here, and divestment of two serviced residence properties in China.

Residential sales remained stable here in the quarter with 108 units sold, bringing the total number of sales in the year to September to 293 with a value of $1.15 billion. These include units at Cairnhill Nine, which was fully sold as at July, and Victoria Park Villas, 86 per cent sold as at Sept 30.

In a research note, OCBC Investment Research analyst Eli Lee said that this quarter's results were broadly within expectations.

CapitaLand president and group chief executive Lim Ming Yan said: "Our active portfolio reconstitution has boosted our results as well as our AUM (assets under management) which stands at $85 billion as at end of (the third quarter)."

He added that the group will continue to maintain its presence in core markets of Singapore and China, while scaling up business in places like Vietnam through residential, serviced residence and commercial projects.

The group noted that the quarterly rise of 1.7 per cent in Grade A office rents in Singapore supports its view that market rates have bottomed out. CapitaLand also expects improved sentiment to sustain the residential property market, underpinned by an increase in home prices and buying volume.

Earnings per share rose to 7.5 cents from 5.8 cents a year ago, while net asset value rose to $4.29 as at Sept 30 from $4.15 as at Dec 31.

CapitaLand shares closed down eight cents at $3.64.