SINGAPORE (Reuters, Bloomberg) - Mainboard-listed CapitaLand announced on Tuesday a 187 per cent jump in fourth-quarter profit, thanks to higher revaluation gains from investment properties and lower portfolio losses.
CapitaLand reported a profit after tax and minority interest (PATMI) of $409.4 million for the October-December quarter against $142.6 million for the same period a year ago, when it incurred divestment losses.
PATMI for for the full financial year rose 38.2 per cent to $1.16 billion.
The Group's operating PATMI for FY 2014 rose 40.4 per cent to $705.3 million over the same period last year, driven by improved operating performance from its shopping mall business and development projects in Vietnam and profit from the sale of Westgate Tower ($123.5 million), as well as lower funding costs.
Group revenue increased 11.8 per cent to $3.92 billion for FY 2014 and the Group's two core markets of Singapore and China accounted for 76.7 per cent (FY 2013: 77.4 per cent) of the revenue.
"Earnings were in line with expectations," Vikrant Pandey, an analyst at UOB Kay Hian, told Bloomberg. "The key to watch for is how their China businesses are shaping up and if there are signs of the market stabilizing, both residential and their mall operations."
Shares of CapitaLand rose 1.1 per cent to $3.63 as of 9:09 a.m. in Singapore, heading for the highest close since May 28, 2013.
Singapore residential demand and prices may further moderate this year as the impact of lending curbs and the risk of higher interest rates weigh on the market, CapitaLand said.
The developer said its China home sales declined 12 per cent to 1,673 units in 2014 while home sales in Singapore fell 62 per cent to 41 units during the same period.
The group has a pipeline of 50 projects valued at $35 billion when completed, it said.