CapitaLand posts 77% rise in 1Q earnings at S$387 mil on better operating performance

SINGAPORE (April 26): CapitaLand posted 1Q earnings of S$386.8 million, a 77.2% increase compared to a year ago, lifted by improved operating performance, including the sale of 45 units of The Nassim, and higher portfolio gains.

Group revenue for 1Q17 ended March was S$897.5 million, 0.4% higher than 1Q16 due to more handovers from its development projects in China and rental contribution from newly acquired properties. The development projects that contributed to the revenue in China this quarter included One iPark in Shenzhen, Riverfront in Hangzhou, Vista Garden in Guangzhou and Summit Era in Ningbo.

Group EBIT grew 35% to S$618.6 million in 1Q17, compared with S$458.2 million in 1Q16. Likewise, operating PATMI for the period increased by 121.1% to S$337.8 million. The increase in EBIT was mainly attributable to a gain of S$160.9 million from the sale of The Nassim, higher handovers from development projects in China, and higher portfolio gains, partially offset by lower revaluation gains from investment properties.

The portfolio gain in 1Q17 of S$17.7 million arose mainly from the divestment of a township project in China. Singapore and China remain the key contributors to EBIT, accounting for 84.8% of total EBIT.

Lim Ming Yan, President & Group CEO of CapitaLand, said: “CapitaLand has achieved another quarter of strong growth. The Group’s optimal asset mix has enabled us to deliver a steady stream of recurring income from our investment properties and management contracts, whilst we continue to realise gains from our trading properties. We have improved our operating PATMI this quarter and will continue to focus on strengthening CapitaLand’s operating PATMI and balance sheet.”

This year, CapitaLand will complete and commence operations of six more shopping malls in China, India, Malaysia and Singapore, as well as the retail components of three Raffles City developments and Capital Square in China.

Shares of CapitaLand closed 5 Singapore cents higher at S$3.67 on Tuesday. — theedgemarkets.com.sg