HIGHER residential sales in Singapore, China and Vietnam gave CapitaLand’s net profit for the first quarter a substantial lift.
Earnings for the three months to March 31 shot up 169 per cent to $115.4 million, compared to $42.9 million a year ago.
Revenue could not match that stellar performance but still rose 41 per cent to $687.3 million, from $487 million the year before.
Turnover from residential projects in Singapore contributed $189.8 million, more than double the figure a year ago. This was mainly due to The Seafront on Meyer and the Latitude projects.
President and chief executive Liew Mun Leong said yesterday that in the first quarter, the group sold residential units here valued at about $800 million.
Overseas operations also prospered, chipping in $426 million – or 62 per cent of overall revenue – with China and Australia contributing the most.
Chairman Richard Hu said the group’s prospects look promising, thanks to Asia’s ‘renewed’ economic growth.
Two core markets, Singapore and China, are tipped to grow substantially this year, putting the group in the position to ride on Asia’s growth story, said Mr Hu.
This month, CapitaLand launched phase two sales of The Interlace, a residential project here. About 75 per cent of the 590 units released have been sold.
With business confidence improving, the group is also seeing office rentals here stabilising.
In China, CapitaLand is experiencing continued demand from homebuyers, with about 800 residential units sold so far in the second quarter.
It has also doubled its property portfolio in China with the acquisition of Orient Overseas Development.
It plans to boost its presence in Vietnam, which is increasing its contributions to total revenue.
CapitaLand recently entered into a joint venture to develop its second residential site in Hanoi and its serviced residences arm, Ascott, expanded to Danang.
Said Mr Hu: ‘We will continue to deploy funds to our businesses in China and Vietnam, and the serviced residence and integrated shopping mall businesses, while being focused on demand fundamentals and disciplined in our investment management.’
Earnings per share for the quarter were 2.7 cents, an increase from 1.2 cents a year ago. Net asset value for the quarter stood at $3.18, up two cents since the fourth quarter last year.
CapitaLand shares closed six cents down at $4.10 yesterday.
Source: Straits Times, 17 Apr 2010
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