CapitaLand said yesterday its third-quarter net profit rose 85 per cent due to higher operating income and one-time gains from asset sales, mainly in its key Singapore and China markets.
South-east Asia’s largest property developer by market value also reiterated its confidence in those two countries, pledging new investments there while playing down the impact from slowing economic growth and recent Government steps to cool the property sector.
Net income climbed to S$148.5 million in the three months ended September from S$80.2 million a year earlier, it said. Sales climbed 13 per cent to S$686.9 million.
CapitaLand attributed the gains to higher takings from its development projects in Singapore, China and Australia, and greater contributions from its shopping mall and property-management businesses.
The developer posted portfolio gains of S$79.8 million from the sale of its serviced residences Ascott Guangzhou and Ascott Raffles Place to Ascott Residence Trust, and the sale of its entire 20.75-per-cent stake in United Malayan Land.
Sales from Singapore projects rose 7 per cent to S$220.1 million in the third quarter, mainly from the Interlace and Urban Resort Condominium, the company said.
Revenue from China accounted for S$67.9 million, a 67 per cent increase over the previous year, it said.
About 32 per cent of the developer’s assets are located in Singapore, while China accounts for about 38 per cent.
CapitaLand, about 40-per-cent owned by Singapore investment firm Temasek, said it does not expect any “significant impact” on new home sales in the short term from the Singapore central bank’s recent move to tighten home-loan rules, the latest of repeated Government steps to calm the heated local property market.
“Both Singapore and China will remain the key markets for the group’s new investments,” CapitaLand said.
“The group will also continue to evaluate opportunities to originate new private equity funds and real estate financial products to complement its core real estate business in China and South-east Asia.”
Source : Today – 31 Oct 2012