One-off transaction costs incurred when acquiring Ascendas-Singbridge hit the bottom line at developer CapitaLand in the second quarter. The property heavyweight reported a 4.2 per cent drop in net profit to $579.8 million for the three months to June 30.
Ascendas-Singbridge is expected to have started contributing to group profit, CapitaLand noted yesterday.
Excluding these costs, earnings would have increased 1.7 per cent, thanks to higher returns from asset recycling and revaluation gains on investment properties, offset by lower contribution from residential projects.
Earnings per share (EPS) for the quarter was 13.9 cents, down from 14.4 cents for the same period last year.
Revenue slumped 19.3 per cent to $1.08 billion, mainly due to reduced home sales in Singapore and lower handover from residential projects held through subsidiaries in China.
This was partially mitigated by higher rental revenue from the portfolio of properties in the United States and Europe acquired last year. Revenue from investment properties grew 9.5 per cent year on year to $927.9 million in the quarter.
The core markets of Singapore and China made up 62.8 per cent of group revenue, down from 75.8 per cent a year ago.
No dividend was declared as CapitaLand pays the first and final dividend only.
Net profit for the half year fell 5.3 per cent to $875.4 million, while revenue tumbled 21.6 per cent to $2.13 billion mainly due to lower contributions from residential projects in Singapore and China.
AT A GLANCE
$1.08 billion (-19.3%)
$579.8 million (-4.2%)
EPS for the six months was 21 cents, down from 21.9 cents for the year-ago period.
Group chief executive Lee Chee Koon said: "The group has successfully unlocked capital through divestments valued at $3.4 billion, exceeding our annual asset recycling target of $3 billion.
"This was achieved by divesting assets that are non-core to our business and recycling quality assets into CapitaLand-sponsored Reits (real estate investment trusts), business trusts and funds to tap recurring yield."
CapitaLand shares closed down 0.3 per cent to $3.47 yesterday.