CapitaLand posts 28% rise in 3Q earnings to S$247.5 mil on better operating performance

SINGAPORE (Nov 9): Property group CapitaLand reported a 28.4% rise in 3Q earnings to S$247.5 million from a year ago, on better operating performance.

Operating PATMI grew 54.5% to S$251.8 million due to higher contributions from the group’s residential businesses in Singapore and China, commercial portfolio in Singapore, shopping malls in China and Malaysia, as well as newly-acquired serviced residences.

In the three months to September, revenue rose 27.7% to S$1.37 billion on the back of higher contributions from development projects in Singapore and China, higher rental income from commercial portfolio in Singapore, as well as serviced residence business.

The development projects which contributed to higher revenue this quarter include The Nassim and Cairnhill Nine in Singapore, Riverfront in Hangzhou, New Horizon in Shanghai and Vermont Hills in Beijing.

Collectively, the two core markets of Singapore and China accounted for 82.9% of the group’s revenue.

For the nine months ended September, earnings came in at S$759.8 million. CapitaLand also sold more than 10,000 units of residential sales in Singapore, China and Vietnam.

In its outlook, CapitaLand expects the property cooling measures to continue to weigh on the Singapore residential market, while office occupancy and rental remains muted.

It local portfolio of malls is expected to continue to provide stable recurring income as they are well-supported by their connections to the public transportation networks.

In China, the group expects the recent cooling measures implemented by the government to have some impact on residential sales.

Shares of CapitaLand closed 2 cents higher at S$3.06 yesterday.