CapitaLand recorded a 4.4 per cent rise in net profit for its second fiscal quarter, lifted by contributions from newly acquired and opened investment properties in Singapore, China and Germany, as well as revaluation gains by its portfolio investment properties.
The gains were partially offset by lower portfolio gains and contribution from the group's residential business, the real estate developer announced in a press statement yesterday before the market opened.
For the quarter under review, net profit for one of Asia's largest developers stood at $605.5 million, up from the $580.1 million the year before, on a 35.3 per cent rise in revenue to $1.34 billion. Last year's net profit was restated to reflect retrospective adjustments related to new accounting standards.
Earnings per share were 14.4 cents in the second quarter, up from 13.7 cents last year.
Revenue rose on the back of higher handover of residential units in China, rental revenue from newly acquired and opened properties in Singapore, China and Germany, and the consolidation of revenue from CapitaLand Mall Trust, CapitaLand Retail China Trust and RCS Trust .
AT A GLANCE
$1.34 billion (+35.3%)
$605.5 million (+4.4%)
Century Park West in Chengdu, New Horizon in Shanghai and Sky Habitat in Singapore were development projects that contributed to revenue for the quarter.
The Singapore and China markets accounted for 74.8 per cent of the group's revenue, up from 74.5 per cent in the year-ago period.
For the fiscal first half, CapitaLand's net profit was $924.6 million, down 5 per cent from $972.9 million, while revenue rose 43.8 per cent to $2.72 billion, excluding gains from the sale of The Nassim.
CapitaLand president and group chief executive Lim Ming Yan said: "CapitaLand continued to make solid progress in strategy execution in H1 2018.
"In the first six months, we divested assets worth $3.11 billion and redeployed $1.8 billion into new investments, exceeding our full-year capital recycling target of $3 billion.
"In terms of capital allocation, we remain disciplined and focused on ensuring a 50:50 balance between emerging and developed markets, while targeting an optimal mix between trading and investment properties."
The group, meanwhile, expects residential sales to moderate in the second half of this year due to increased additional buyer's stamp duty rates and tightened loan-to-value limits introduced early last month.
Separately, Mr Lim told Bloomberg Television that Singapore's latest round of property curbs would probably cool the market and may present buying opportunities.
"With the recent property curbs, we see new situations, new opportunities arising," he said in the interview yesterday.
CapitaLand shares yesterday ended four cents higher at $3.30.