SINGAPORE: CapitaLand, Southeast Asia's largest property developer, reported a three-fold increase in first-quarter net profit after restating the year-ago figure, helped by higher profits from development projects and portfolio gains.

CapitaLand, about 40%-owned by Singapore state investor Temasek, earned S$101.5 million (RM246 million) net profit in the three months ended March, up from S$29.8 million a year ago.

CapitaLand restated its 2010 earnings downwards to make them comparable with its 1Q results that adopted a new accounting standard that took effect Jan 1.

The new accounting rule means CapitaLand's earnings from overseas development projects can only be recognised upon full completion, resulting in earnings that are more volatile and lumpy.

"We note that home sales in China and Singapore were slow in the first quarter and fell short of CapitaLand's target... partly due to the new cooling measures (in China) and the Chinese New Year festivities where sales typically slow," said RBS in a report.

However, Credit Suisse said it expected CapitaLand to book more profits from its overseas projects and higher contributions from CapitaMalls Asia over the next three years to help boost earnings.

CapitaLand's revenue in January-March was S$611.5 million, 39% higher than a year ago due to higher contributions from its development projects in Singapore, China and Australia.

At 0325 GMT, CapitaLand shares were flat at S$3.41, compared with the Straits Times Index's 0.45% losses.

CapitaLand shares have fallen about 8% since the start of the year, weighed by concerns that government measures to curb property prices will hurt its earnings.

CapitaLand said its core markets of Singapore, China and Australia accounted for 96% of its group earnings before interest and taxes in the first quarter.

"As we move into our next 10 years of expansion, it is our intention to focus our capital and human resources on building on our success in these core markets by both broadening and deepening our businesses there," Liew Mun Leong, president and CEO of CapitaLand, said in a statement.

The firm has expanded its residential pipeline in China to over 64,000 units, and also plans to build 10,000 to 15,000 low-cost housing units a year in China and Vietnam over the next three to five years, Liew said. — Reuters

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