CMA earnings rise 236% to $388.1m

Opening of 11 malls, revaluation gains help to boost bottomline

CAPITALAND’S shopping malls unit CapitaMalls Asia (CMA) posted a net profit of $388.1 million for 2009, its first annual result after listing late last year.

The company’s net profit rose 236 per cent from $115.6 million in 2008 as it opened a total of 11 malls last year. Revenue rose 12 per cent to $228.9 million last year from $205.2 million in 2008.

In Q4 2009, CMA recorded a net profit of $169.9 million on the back of a revenue of $66.1 million. Earnings in Q4 2008 were a negative $7 million, while revenue was $64.1 million.

CMA’s bottomline last year was boosted by a close to $178 million increase in the valuation of its properties between end-2008 and end-2009.

A large part of this was contributed by the revaluation of ION Orchard, which was valued at $3,950 per square foot (psf) at end-2009 – although this was partially offset by the downward valuations (recognised on June 30, 2009) of One-North and the portfolio of CapitaMall Trust in Singapore as well as assets in Japan and India.

CMA proposed a first and final dividend of one cent a share for 2009. The company also said that it has secured credit facilities of over $1 billion from various banks.

The company now has a total of 60 operational malls across Asia.

‘We are developing another 26 malls in Singapore, China and India, which we will open over the next few years,’ said chief executive Lim Beng Chee.

In China, the company expects to open another six malls this year. It will also open its second mall in India by the end this year. Added Mr Lim: ‘In addition to this growth pipeline, we see further development and acquisition opportunities in our key markets of Singapore, China and Malaysia, which we will actively explore to strengthen our presence in those markets.’

Mr Lim also addressed questions about the tightening credit conditions in China.

‘As a long-term investor in China, the current credit tightening measures will not hinder our expansion plan in the country,’ he said. ‘On the contrary, we are encouraged by the steps taken by the Chinese government, to ensure the sustainability of its economic growth.’

CMA shares closed unchanged at $2.25 yesterday.

Source: Business Times, 4 Feb 2010