CapitaLand sinks into red with $1.67b loss in H2

Main factors are revaluation of investment properties and $2.49 billion impairment

CapitaLand said revenue rose 9.8 per cent to $4.51 billion for the second half, mainly due to a higher handover of units from residential projects in China and Vietnam. The firm racked up a net loss of $1.57 billion for the full year, from a net prof
CapitaLand said revenue rose 9.8 per cent to $4.51 billion for the second half, mainly due to a higher handover of units from residential projects in China and Vietnam. The firm racked up a net loss of $1.57 billion for the full year, from a net profit of $2.14 billion.ST PHOTO: KUA CHEE SIONG

CapitaLand sank into the red with a net loss of $1.67 billion for the second half, after earnings of $1.26 billion a year earlier.

This was mainly due to the revaluation of investment properties and a $2.49 billion impairment of projects and equity investments which are non-cash in nature, the property giant said yesterday.

Loss per share stood at 32.4 cents for the six months to Dec 31, from earnings per share of 25 cents a year earlier.

Revenue rose 9.8 per cent to $4.51 billion, mainly due to a higher handover of units from residential projects in China and Vietnam.

The increase was partially offset by lower rental revenue from CapitaLand's investment property portfolio amid the Covid-19 pandemic.

The group also extended tenant support relief measures by way of rental rebates, mainly in Singapore, China and Malaysia.

The group saw a 66.1 per cent drop in other operating income to $369.8 million.

Other operating expenses widened to $2.19 billion, from $72.4 million a year earlier.

These comprised $1.53 billion in fair-value losses of investment properties held through subsidiaries, a $593.6 million impairment of investments in Hong Kong, Australia, the United States, Britain and Indonesia, as well as recognition of the Singapore Government's rental relief passed down to tenants amounting to $32.9 million.

CapitaLand said the fair-value and impairment losses are non-cash in nature and principally stemmed from the extraordinary events relating to the pandemic that materially adversely affected the group's business during the year.

The firm racked up a net loss of $1.57 billion for the full year, from a net profit of $2.14 billion.

Revenue was up 4.8 per cent to $6.53 billion.

The board has proposed a final dividend of nine cents a share for the full year, down from 12 cents in 2019.

CapitaLand shares closed up 1 per cent at $3.15 yesterday.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on February 25, 2021, with the headline 'CapitaLand sinks into red with $1.67b loss in H2'. Subscribe