CapitaLand Annual Revenue Up on Property Sales in China
Feb 17th, 2016
CapitaLand, Singapore's biggest real estate developer by market capitalization, reported total turnover for the financial year of 2015 increased by 21.3 percent to SGD 4.76 billion, driven by record sales of its property projects in China and fair value gains arising from investment properties.
Earnings before interest and tax (EBIT) totaled SGD 2.32 billion in 2015, 5 percent lower from 2014, the company attributed it to lower fair value gains from revaluation of investment properties and lower residential margins arising from different product mix during the reporting period. The Southeast Asia's biggest property developer meanwhile reported fourth quarter net profit reached SGD 394 million, when compared SGD 642 million during same quarter a year ago. The board of directors proposed a final dividend of SGD 9 cents a share for the financial year of 2015.
Singapore and China remained key markets for the company's total turnover, Singapore accounted for 33 percent of the group’s 2015 revenue while China operations accounted for 49.1 percent. Together the two markets accounted for 81.8 percent of its total turnover, up from 77 percent of 2014. By comparison in 2014, Singapore accounted for 55 percent of its revenue while China accounted for 22 percent of CapitaLand's revenue. The Singapore and China markets remain the key contributors to the developers’ EBIT, accounting for 79 percent of CapitaLand’s total EBIT, when compared with 83.5 percent of 2014.
In 2015, CapitaLand achieved record sales of 9,402 residential units in China with total sales value of RMB 15.4 billion (SGD 3.4 billion, USD 2.42 billion) when compared with 4,961 units of total revenue RMB7.6 billion in the year of 2014. In Vietnam, CapitaLand sold 1,321 residential units with a sales value of SGD 226.5 million when compared with SGD 151.5 million in 2014.
Mr Ng Kee Choe, Chairman of CapitaLand Group, sees the past year challenging conditions in Asia across various asset classes.
Lim Ming Yan, President and Chief Executive Officer of CapitaLand Limited, said although the company will cotinue to expand in growth markets such as Vietnam and Indonesia, CapitaLand remains focused on growth in our core markets of Singapore and China.
Lim said in the China market CapitaLand expects its new Raffles City developments in China bring success over the next few years and expects residential sales in China market to perform steadily this year.