CapitaLand reports 33% on-year drop in Q3 net profit

Property giant CapitaLand said on Tuesday it posted its smallest decline in net profit in a year.

It said its third quarter net profit after tax and minority interests for the period ended September stood at S$281.3 million, down 33 per cent compared to the S$419.4 million earned over the same period last year.

CapitaLand said the decrease was mainly attributed to lower divestment gains this year.

In the third quarter last year, the firm’s profit was boosted by S$441 million due to divestments in properties such as One George Street.

However, compared to the previous quarter, net profit rose by 127 per cent, excluding impairments and revaluations in the April to June period.

Revenue in the third quarter also increased 75 per cent on-year to S$1.04 billion on the back of higher revenue recognition for projects in Singapore, China and Vietnam.

CapitaLand noted that global economies are continuing to stabilise, with its core markets of Singapore, China and Australia exhibiting improved conditions.

Going forward, the firm said it will embark on its next phase of growth, including a plan to raise its China assets to between 40 and 45 per cent of its total assets.

It will also explore the creation of new funds and REITS where there is investor demand and good assets.

Source : Channel NewsAsia – 27 Oct 2009

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