CapitaLand posts 1.7 per cent fall in Q1 net profit to $183 million

CapitaLand Limited achieved a net profit of S$182.8 million for 1Q 2014, down 1.7 per cent, as prior year comparison included a one-time portfolio gain of S$58.7 million. The Group' s operating PATMI increased 29.9 per cent to S$155.7 million from 1Q 2013, driven by higher development profits and improved performance from shopping malls. Group revenue was S$612.6 million.

CapitaLand Singapore sold 34 residential units, which amounted to a total sales value of S$87.0 million in 1Q 2014. Subsequently in April, 106 units of Sky Habitat with a total sales value of about S$157.6 million were sold following a marketing campaign. In China, 1,177 residential units at a sales value of S$269.0 million were sold in 1Q 2014. The units are mainly from La Botanica in Xi' an, The Loft in Chengdu, The Metropolis in Kunshan and The Paragon in Shanghai.

CapitaLand Singapore' s revenue for 1Q 2014 was S$196.0 million or 37.7 per cent lower than 1Q 2013, as sales contributions from Urban Resort Condominium and The Interlace tapered off after obtaining Temporary Occupation Permit in 2013. This was mitigated by revenue recognition from Sky Habitat and Bedok Residences, and rental income from CapitaCommercial Trust.

For CapitaLand China, revenue rose 56.2 per cent to S$82.0 million, in line with the increase in the number of units handed over from projects held through subsidiaries. In 1Q 2014, more than 500 units were handed over to homebuyers, mainly from The Loft, La Cite in Foshan and Lake Botanica in Shenyang.

Revenue for CapitaMalls Asia grew 42.3 per cent to S$169.0 million for 1Q 2014, mainly due to rental revenue from Bedok Mall and Westgate Mall which commenced operations in December 2013, revenue recognition for units sold in Bedok Residences, higher property income from Olinas Mall in Japan and operating malls in China.

For Ascott, 1Q 2014 revenue was S$152.3 million, up 8.2 per cent mainly due to better performance of properties in Indonesia, Vietnam and Europe, and contribution from newly acquired properties in 2Q 2013.

In 1Q 2014, the Group achieved Earnings before Interest and Tax (EBIT) of S$419.5 million. Singapore and China operations remained the key contributors to EBIT, accounting for 83.6 per cent of total EBIT from continuing operations. Singapore EBIT was S$185.8 million or 44.3 per cent of total EBIT, while China EBIT was S$164.8 million or 39.3 per cent of total EBIT.

Mr Lim Ming Yan, President & Group CEO of CapitaLand Limited, said: " We look forward to further harnessing the key strengths of our various businesses in residential, shopping malls, offices, serviced residences and integrated developments, to create differentiated real estate projects and enhance overall project returns, with Singapore and China remaining as the Group' s core markets."

He added: " Given the streamlined organisational structure, coupled with a healthy balance sheet and prudent capital management, CapitaLand is well-positioned to capitalise on opportunities."