Singapore property developer CapitaLand reported an 83 per cent drop in its third quarter net profit to S$80.2 million. That is down from a restated S$460.1 million in the same period last year.
Revenue for the quarter also fell 58 per cent to S$608.6 million from a restated S$1.44 billion a year ago.
CapitaLand said the decrease in revenue was primarily due to the exceptionally strong revenue a year ago from units sold under the deferred payment scheme from two projects in Singapore.
This is based on a new accounting policy, whereby revenues from projects are only recognised upon completion. Based on the previous accounting standard, net profit fell by 50 per cent and revenue fell by 11 per cent.
It said revenues for units sold under the deferred payment scheme from The Seafront on Meyer and Latitude projects in Singapore were recognised in the third quarter of 2010. Excluding the effects of these projects, CapitaLand said group revenue for the quarter was marginally lower due to fewer projects being completed in China and Australia.
CapitaLand said it will continue to adopt a prudent investment approach and added that market uncertainty and cooling measures will provide opportunities for it to explore and secure investment opportunities, especially in Singapore and China.
CapitaLand added that its strategic focus is still on its core markets, where it has committed S$7 billion of new investments.
Source : Channel NewsAsia – 21 Oct 2011