Mainboard-listed developer CapitaLand is back in the black in its fiscal second quarter.
It made a net profit of S$476.1 million in the three months to June. That’s a turnaround from the S$156.9 million loss incurred in the same period a year ago.
CapitaLand said the strong profit growth compared to last year reflects a recovery in Singapore and the key markets it operates in.
Revenue for the quarter rose 48 percent on year to S$873.9 million.
In Singapore, CapitaLand’s revenue from residential projects increased by S$301.4 million, mainly from its Latitude and The Seafront on Meyer projects.
Contributions from Australian projects were also higher due to the strengthening of the Aussie dollar against the Singapore dollar.
In China, the company saw a reduction in revenue due mainly to lower recognition from its subsidiaries’ projects – most of the sales having been previously recognised.
Going forward, CapitaLand CEO Liew Mun Leong said the company expects continued improvement in its operating performance across key sectors in its core markets of Singapore, China, Australia and Vietnam.
In Singapore, CapitaLand expects to see strong sales momentum for its residential projects.
The prime office sector in Singapore is recovering as rents have troughed and demand has rebounded.
In China, it remains on track to launch new residential projects in Shanghai and Hangzhou later this year.
In Vietnam, CapitaLand said it is continuing to grow its business from total assets of S$400 million currently to approximately S$2 billion over the next three to five years.
Its unit Ascott has benefited from the recovery in global business travel to achieve higher revenue and occupancy for its serviced residences in the first half of this year.
As more asset enhancement initiatives in Asia and Europe are completed, Liew said Ascott will capture the uptrend in the improved hospitality market.
Source : Channel NewsAsia – 4 Aug 2010