SINGAPORE - CapitaLand reported on Thursday (Aug 4) a 36.6 per cent drop in net profit for its second quarter due to lower fair value gains from revaluation of properties, partially offset by improved operating performance.
For the three months to June 30, 2016, earnings amounted to S$294 million versus S$464 million for the same period a year ago.
Excluding a one-off fair value gain of S$125.9 million arising from the change of use of development projects, CapitaLand's adjusted operating net profit rose 31.8 per cent.
This came as revenue in the second quarter increased 9.7 per cent to S$1.13 billion from higher contributions from shopping malls and development projects in China, higher contribution from CapitaGreen in Singapore, as well as its serviced residence business.
For the first half-year, net profit fell 18.1 per cent to S$512.3 million from S$625.3 million a year ago.
Said Mr Lim Ming Yan, president & group CEO: "CapitaLand's operating performance has remained robust in an environment of slow economic growth and market uncertainties. Our recurring income provides stability and resilience. We will maintain our focus on our core markets of Singapore and China and the growth markets of Vietnam and Indonesia, as well as our serviced residence global platform."
The campany said it sold 304 homes in Singapore in the first half of this year, nearly three times the 106 units it sold in the same period last year. It added that about 90 per cent of launched units in thefirst half-year were sold.
CapitaLand also sold 6,273 homes in China in the first half-year, 50% more when compared to the same period last year. For the second half of the year, the group has over 3,000 launch-ready units. It will also start handing over about 9,000 sold units with a total value of about RMB13 billlion from the second half of 2016 onwards - with at least 60 per cent of this value expected to be recognised in its second half-year results.