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SINGAPOREL CapitaLand, Southeast Asia's largest property developer, said on Thursday, Aug 4 its second quarter net profit, excluding revaluations and impairments, rose 27% year-on-year, helped by higher revenue from development projects in Singapore and China.
CapitaLand, about 40%-owned by Singapore state investor Temasek , earned S$171.3 million (RM421.56 million) net profit excluding revaluations and impairments in the three months ended June, up from a restated S$135.3 million a year ago.
CapitaLand restated its 2010 earnings downwards to make them comparable with its second quarter 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.
The property developer's revenue in April-June was S$740.4 million, 25% higher than a year ago, as stronger sales from projects in Singapore and China as well as higher fee-based income helped offset lower revenue from development projects in Australia.
"While global economic growth remains patchy and despite concerns about Europe's debt crisis and the U.S. budget deficit, Asia continues to present growth prospects," said CapitaLand Chairman Richard Hu in a statement.
"We expect to expand our businesses and continue to actively pursue investment opportunities in our core and secondary markets."
CapitaLand made about S$5 billion worth of investments mainly in Singapore, China, Australia and Vietnam in the first half of the year, the statement said.
CapitaLand said it still remained bullish on the long-term outlook of China's property market.
However, its shares have plunged 24.5% since the start of the year, weighed by government policy measures in both China and Singapore to curb property prices. The Straits Times Index fell 1.9% over the same period.
"For China, we remain positive and confident of its real estate market and believe in the long-term resilience of the economy as it is supported by rapid urbanisation, strong domestic consumption and increasing affluence," said CapitalLand president and CEO Liew Mun Leong. — Reuters
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