Property developer CapitaLand on Friday posted an 83 per cent fall in its first quarter profit.
For the three months ended March, the developer’s profit was S$42.9 million, down from S$247.5 million earned over the same period last year.
Revenue fell by 23 per cent to S$487 million due mainly to lower property values across the region.
Lower profits were recorded in China, Europe and Australia, which was further impacted by a weaker exchange rate in the Australian dollar.
Marked-to-market losses for certain hedging contracts also pulled profits down.
CapitaLand added that an absence of divestment and foreign exchange gains contributed to the decreased profit.
In the first quarter last year, the company recognised portfolio gains of S$141 million.
In view of the current weak global economy, CapitaLand’s CEO Liew Mun Leong said the company does not expect a quick and sharp turnaround in global property markets.
Source : Channel NewsAsia – 24 Apr 2009