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CapitaLand Q3 profit down 38%
SINGAPORE - CapitaLand Ltd, Southeast Asia's biggest developer, posted on Thursday a 38 per cent drop in quarterly net profit on the absence of large divestment gains in the same period a year ago and lower contributions from its Australian projects.
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The company, which earns up to 80 per cent of its pre-tax profit abroad, sold more private homes in Singapore since last July, when the government eased rules on real estate financing and foreign investment in property.
'Our business units are expected to benefit from the very strong recovery in the Singapore economy and the robust real estate growth in our key Asian markets,' CapitaLand chairman Richard Hu said in a statement.
The developer reported $273.4 million (US$175.1 million) in net profit in the July-September quarter, down from $443.8 million a year ago.
The company's third-quarter earnings last year were boosted by the sale of hotels -- including the flagship Raffles Hotel -- owned by its 60-per cent subsidiary Raffles Holdings.
CapitaLand said it earned $718 million in sales for the July-September quarter this year, 15 per cent down from the same period a year ago.
The developer, 46-per cent owned by Temasek Holdings, said the lower sales from its Australian projects had been offset by higher residential sales from China, which accounted for nearly a fifth of its January-September revenue.
The company's shares have gained 70 per cent in the past 12 months, outperforming the average 50 per cent gain chalked up by Singapore property shares .
Unlike rival City Developments Ltd which has the largest landbank in the city-state, CapitaLand focuses on managing properties rather than owning assets.
It manages two of Singapore's largest real estate investment trusts or Reits -- CapitaMall and office trust CapitaCommercial -- and has said it will raise up to $218 million with a property trust based on its shopping mall assets in China by the end of this year.
The developer has teamed up with Bahamas-based casino operator Kerzner International to put in a US$3.3 billion proposal for Singapore's second casino resort, which will be awarded by the end of the year. -- REUTERS