Singapore property developer CapitaLand said on Thursday it slipped into the red during the second quarter with a net loss of S$156.92 million (US$108.76 million) – its first quarterly loss since 2003.
This compared with a profit of S$515.2 million in the same quarter last year.
CapitaLand said the June quarter loss was due to revaluations and impairment provisions the property developer took during the period as valuations declined amid the ongoing global economic slump.
Excluding revaluations and impairment provisions, the property developer said it would have earned a net profit of S$124 million.
“The weaker market valuations of real estate properties are an expected outcome of the ongoing financial crisis,” said president and chief executive Liew Mun Leong in a statement.
CapitaLand was also affected by weaker revenues which slumped almost 28 per cent to S$591.14 million from a year ago partly because of lower sales in Singapore and Australia, the developer said in the statement.
“Although some stability has been restored in the financial markets, the outlook for 2009 remains uncertain,” said chairman Richard Hu.
“We remain determined to maintain our financial strength to act on opportunities that will arise in our various markets, notwithstanding the challenging economic conditions,” he said.
CapitaLand said its cash position at the end of the June quarter was S$4.2 billion.
CapitaLand, headquartered in Singapore, is among the largest real estate firms in Asia with residential and commercial projects spread across 20 countries, including Australia, China, Vietnam and Japan.
In the first quarter of this year, CapitaLand said its net profit dropped 83 per cent on-year to S$43 million.
Source : Channel NewsAsia – 30 Jul 2009