CapitaLand profit down 46%

TOUGH QUARTER: CapitaLand - which is behind the upcoming Bedok Residences - sold 109 residential units in Singapore in the fourth quarter, compared with 352 for the same period a year ago. Profit declined to S$142.9 million.


    Feb 20, 2014

    CapitaLand profit down 46%

    CAPITALAND'S fourth-quarter profit fell 46 per cent after it recorded a loss on the sale of a stake in Australand Property Group and lower revenue from its Singapore home sales.

    Profit declined to S$142.9 million in the three months ended Dec 31, from S$262.7 million a year earlier, the developer said in a stock-exchange statement yesterday.

    Revenue slid 2.3 per cent to S$1.09 billion. Profit for the year fell 8.7 per cent to S$849.8 million while operating profit rose 43 per cent to S$527.7 million, the company said.

    "Operating profit was below our expectations," said Mr Vikrant Pandey, an analyst at UOB Kay Hian in Singapore. He had estimated operating profit at S$596 million for the period.

    The decrease in revenue was mainly because of the de-consolidation of Australand and lower revenue from Singapore development projects, CapitaLand said in the statement.

    The developer raised A$426.4 million (S$486 million) by selling a third of its 59 per cent stake in Australand in November. The loss on the sale was S$120.8 million, it said.

    CapitaLand sold 109 residential units in Singapore in the quarter, compared with 352 for the same period a year ago.

    Fourth-quarter home prices in Singapore slid for the first time in almost two years, trimming annual gains to the smallest since 2008 as mortgage curbs cooled prices.

    The developer sold 611 home units in China in the quarter, the company said yesterday. Its two core markets of Singapore and China accounted for 88 per cent of the group's profit before interest and tax last year, it said.

    CapitaLand bought a residential site in China's Ningbo city for S$232 million and plans to build about 1,100 small and medium-sized units, the developer said on Jan 23.

    The developer - along with CapitaMalls Asia and CapitaMall Trust - sold Westgate Tower, a Singapore office building, for S$579 million, it said last month.