CapitaLand 1H Revenue Up Profit Down
August 4 , 2016
CapitaLand reported pretax profit SGD1.05 billion for the first half, 16.5% lower than SGD1.26 billion same period last year due to lower fair value gains from revaluation of properties. Group revenue increased 4.1% to SGD2.03 billion in the first six months ended June from SGD1.96 billion during the same time period a year ago.
The company attributed the revenue gain to higher contributions from development projects in Singapore and China as well as higher rental income from its serviced residence unit. CapitaLand said Singapore and China remain the key contributors, accounting for 78.1% of the company’s pretax earnings during the first half.
Lim Ming Yan, President & Group CEO of CapitaLand Limited, said: “CapitaLand’s operating performance has remained robust in an environment of slow economic growth and market uncertainties. “
Despite a muted residential market in Singapore, the company sold 304 homes in the first half, nearly three times the 106 units sold in the same period a year ago, with about 90% of launched units sold, the company said in a release.
In China, it sold 6,273 houses during the first half, 50% more when compared to the same period last year. The Group remains focused on the first- and second-tier cities, and on targeting first-time home buyers and upgraders, it said. It had two new malls opened in China during the first half.
The company’s serviced residence arm, the Ascott, added over 5,300 units across the Americas, Asia, Europe and the Middle East from the January to June, bringing its serviced residence units to more than 47,000. It is poised to outpace its growth for the whole of 2015, when a total of 6,700 units was added to the portfolio.
As part of its capital management strategy during the first half, CapitaLand divested its 50% interest in CapitaGreen to CapitaLand Commercial Trust for a capital gain of SGD 318.3 million in May.
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