Property giant CapitaLand posted a net profit of S$101.5 million for its first quarter performance ended March 31.
This is more than tripled the restated S$29.8 million net profit from the same period one year ago.
The group attributed the higher net profit to increased contributions from its Singapore, China and Australian projects.
Some of its key projects include The Interlace and The Wharf in Singapore, Beau Residences and The Riviera in China, as well as commercial and industrial projects in Australia.
Revenue in the first quarter stood at S$611.5 million, 39 per cent higher than the restated S$440 million in the same period one year before.
The restated net profit was also due to a new accounting policy implemented by CapitaLand earlier this year.
Its unrestated net profit in the first quarter of last year was S$115.4 million.
The new accounting standard will only recognise revenue contributions from overseas and local projects when they are completed.
This, the group said, will result in “income recognition that is lumpy and back-ended”.
It added that the policy may result in “more volatility in profit recognition even though the underlying projects’ cash flows have not changed”.
CapitaLand chief executive officer Liew Mun Leong said its three core markets Singapore, Australia and China accounted for 96 per cent of the group’s earnings before interest and taxes (EBIT).
Mr Liew also said in a statement that CapitaLand will develop Vietnam into a fourth core market, while monitoring the country’s market developments and macroeconomic situation at the same time.
Source : Channel NewsAsia – 26 Apr 2011