SINGAPORE - CapitaLand announced a 35.4 per cent rise in net profit to S$218.3 million for its first quarter ended March 31 from S$161.3 million a year ago, mainly due to the fair value gain from the divestment of a property in China, Somerset ZhongGuanCun Beijing.
Operating net profit for the quarter dipped 1.6 per cent to S$152.8 million, the developer said on Wednesday (April 20).
Excluding the gains from the change in use of properties year-on-year in the first quarter, operating net profit grew 10.6 per cent from higher contributions from development projects in China, new contribution from CapitaGreen, and better operating performance for the shopping mall and serviced residence businesses.
Group revenue decreased 2.3 per cent to S$894.2 million mainly due to the absence of a fair value gain of S$59.6 million arising from the change in use of Ascott Heng Shan Shanghai in the first quarter of 2015, and lower contributions from development projects in Singapore and Vietnam.
The decrease was partially mitigated by higher residential sales revenue in China, as well as higher rental revenues from CapitaGreen and the serviced residence business, said CapitaLand.
Earnings before interest and tax rose 20.1 per cent to S$458.2 million. This mainly attributable to the fair value gain from the divestment of Somerset ZhongGuanCun Beijing, improved contributions from CapitaGreen, shopping malls and development projects in China, as well as lower divestment losses.
Said Mr Lim Ming Yan, CapitaLand president & group: "CapitaLand is well positioned to ride through current market challenges and to seize opportunities given our strong balance sheet and resilient recurring income stream. We will seek attractive investment opportunities to grow our recurring income and to maintain development gains from trading assets.
"The group will maintain our focus on core markets of Singapore and China, growth markets of Vietnam and Indonesia, as well as our serviced residence global platform. In addition to capital recycling and portfolio reconstitution, we will also leverage our fund management platform and management contracts to grow our assets under management."
The developer said residential sales in Singapore, China and Vietnam performed well in the first quarter and highlighted the "strong interest" for Cairnhill Nine in Singapore with 193 of the 268 units sold as at April 14.
The group's serviced residence arm, The Ascott, added over 1,000 units to its China portfolio.
