CapitaLand Uncovers interim results
August 5, 2015
CapitaLand Group, Southeast Asia’s biggest real estate developer by market cap, reported earnings before interest and tax (EBIT) escalated up 3.1 percent to SGD 1.26 billion for the first half this year from SGD 1.22 billion same time period last year. EBIT for the second quarter stood at SGD 875 million, up 9.1 percent from same time period in the previous year.
CapitaLand’s second quarter operating profit after tax and minority interests was 87.6 percent higher at SDG 256.1 million compared to the same quarter last year, on account of gains arising from the change in the use of development properties for sale in China- the Paragon Tower 5 & 6 and Raffles City Changning Tower 3 in Shanghai.
Revenue increased by 17.8 percent in the second quarter on the back of higher contribution from development projects in China, partially offset by lower revenue from development projects in Singapore and Vietnam.
Revenue of CaptiaLand, one of Asia biggest real estate developers by asset fair values, jumped up 31 percent to SGD 1.95 billion in the first half when compared with the same period last year. The developer recorded higher rental revenue from its shopping mall and serviced residence businesses during the quarter. Collectively, the two core markets of Singapore and China accounted for 79.6 percent of the group’s revenue, compared with 72.9 percent of the second quarter in 2014.
“CapitaLand is set to scale up with a target of six new funds up to SGD 10 billion in assets by 2020. The first, a joint venture between our wholly owned serviced residence business unit, The Ascott Limited (Ascott), and Qatar Investment Authority, is a serviced residence fund with an equity commitment of USD 600 million (approximately SGD 809 million)” said Lim Ming Yan, President & Group CEO of CapitaLand Limited in a release.
On capital recycling, CapitaLand has announced the divestment of its 30 percent stake in PwC building, Bedok Mall to CapitaLand Mall Trust as well as serviced residences in Australia and Japan to Ascott Residence Trust.
Paragon Tower Project in Shanghai, China