CapitaLand Ltd reported a 44.9 per cent quarter-on-quarter drop in profit for its financial fourth quarter ended Dec 31, 2012, at S$262.72 million, dragged down by lower fair value gains on properties.

Revenue for the financial fourth quarter of 2012 increased 4.9 per cent to S$1.11 billion from S$1.06 billion a year earlier, mainly attributable to higher sales recognition from development projects in Singapore and Australia as well as higher rental revenue from the group's shopping mall business and higher fee income.

Earnings per share for the quarter fell to 6.2 Singapore cents compared to 11.2 Singapore cents the same period a year earlier.

For the full year ended Dec 31, 2012, CapitaLand's profit dipped 12 per cent to S$930 million.

CapitaLand is making a S$3.2 billion joint acquisition and development of one of the five flagship zones in Johor's Iskandar Malaysia its first direct large-scale township investment and development in the country.

The real estate company said on Tuesday that its wholly owned subsidiary, CapitaLand Malaysia Pte Ltd, had inked a heads of agreement with Iskandar Waterfront Sdn Bhd (IWSB) and Temasek to jointly acquire and develop parcels of land in Danga Bay.

CapitaLand Malaysia, IWSB and Temasek will hold 51 per cent, 40 per cent and 9 per cent stakes respectively in the joint venture.

The joint venture will acquire 3.1 million square feet of freehold net land in Danga Bay for a purchase price of RM811 million (S$324 million).