CapitaLand, Southeast Asia’s biggest developer, posted a 33 per cent drop in its third quarter net profit recovering from a loss in the previous quarter, boosted by recovering Asian property markets.
The company, 40 per cent held by Singapore investor Temasek, said its improved performance was due to strong revenue contribution from residential projects in China, Singapore and Vietnam as well higher fund management fees.
‘Going forward, operating results will be underpinned by the recognition of profits from our residential sales in Singapore and China, and ongoing income contributions from Raffles City Beijing and ION Orchard (shopping mall),’ it said in a statement.
CapitaLand reported a net profit of S$281.3 million (US$201.4 million) for the three months ended Sept 30 compared with a net profit of S$419.4 million a year earlier, when it recorded substantial divestment gains.
The profit in the third quarter compares with a quarterly loss in the second quarter, CapitaLand’s first quarterly loss since 2003, due to writedowns and impairment charges.
CapitaLand’s shares are up 72 per cent this year, outperforming the Singapore benchmark stock index which rose 54 per cent in 2009.
The company said its proposed listing of shopping malls on the Singapore Exchange is subject to prevailing market conditions and approval from shareholders on Oct 30.
CapitaMalls Asia, in which CapitaLand will retain a majority stake, is expected to raise over US$1 billion and set to go on a roadshow next month, sources familiar with the deal have said.
CapitaLand is expected to record a net profit of S$323.90 million this year according to ThomsonReuters forecast, down from S$1.26 billion made in 2008.
Source: Business Times, 27 Oct 2009