CapitaLand Q1 net profit jumps 169% on residential projects

Mainboard listed CapitaLand said Friday its net profit surged 169 per cent on-year to S$115.4 million in the first quarter ended March 31.

Its revenue grew 41 per cent to S$687.3 million compared to the same period last year.

The group said this is largely from residential development projects in Singapore, China and Vietnam, as well as increased contribution from its serviced residences operations.

In Singapore, CapitaLand’s revenue rose 69 per cent to S$261 million due to continued recognition for the Latitude and The Seafront on Meyer projects.

Revenue from its overseas operations increased 28 per cent to S$426 million, making up about two-thirds of the Group’s revenue in the quarter.

Going forward, CapitaLand CEO Liew Mun Leong said the company will continue to seek strategic opportunities such as the acquisition of Orient Overseas Developments Limited, which doubled its property portfolio in China.

In Singapore, Mr Liew said CapitaLand has sold residential units valued at about S$800 million in the first quarter, mainly from its Urban Suites project.

He said phase two sales of The Interlace, at the former Gilman Heights site, started this month and about 75 per cent of the 590 units released have been sold to-date.

Mr Liew also noted that office rentals in Singapore have started to stabilise with the improvement in business confidence.

He said there is sustained underlying demand from homebuyers in China, resulting in CapitaLand transacting about 800 residential units this quarter.

In Vietnam, CapitaLand has a joint venture to develop its second residential site in Hanoi and will further grow its presence through strategic partnerships.

CapitaLand’s service residence business, Ascott, also extended its footprint to Danang, Vietnam, with the city’s first international serviced residence brand.

Source : Channel NewsAsia – 16 Apr 2010