Real estate company CapitaLand Limited posted a Profit After Tax and Minority Interests (PATMI) of S$409.4 million for the fourth quarter of 2014, an 187 per cent increase over the same period in 2013, it announced in a news release on Tuesday (Feb 17). The group also posted a PATMI of S$1.16 billion for the 2014 financial year, which is a 38.2 per cent increase year-on-year.
The group attributed the increase to “improved operating PATMI, higher revaluation gains from investment properties and lower portfolio losses, partially offset by higher impairments.”
Its operating PATMI for the 2014 financial year was S$705.3 million, an increase of 40.4 per cent over the same period last year. This was driven by improved operating performance from the group’s shopping mall business, development projects in Vietnam, profit from the sale of Westgate Tower – which amounted to S$123.5 million – and lower funding costs, according to the release.
Group revenue increased 11.8 per cent to S$3.92 billion for the 2014 financial year. The group’s two core markets, Singapore and China, accounted for 76.7 per cent of the revenue. Both markets accounted for 77.4 per cent of revenue for the previous financial year.
CapitaLand Limited’s Earnings before Interest and Taxes (EBIT) increased 7.9 per cent to S$2.44 billion in the 2014 financial year. Its Singapore and China operations accounted for 83.5 per cent of total EBIT, according to the release.
A higher Singapore EBIT was attributed to profit from the sale of Westgate Tower, higher fair value gains of investment properties, absence of divestment loss and lower losses from the re-purchase of convertible bonds, partially offset by higher provision for impairment and foreseeable losses, CapitaLand said.
EBIT from China decreased due to lower portfolio and fair value gains, partially mitigated by higher share of development profits from projects held through associates, and lower provision for foreseeable losses, the release stated.
Mr Ng Kee Choe, Chairman of CapitaLand Group, said: “The Group has achieved a credible set of results and is well-positioned for its next stage of growth. On account of its strong operating performance, the Board is pleased to propose an increased dividend of 9 cents per share.”
As a Group, CapitaLand has an operating portfolio of five Raffles City integrated developments, 86 operational malls, about 25,700 operational serviced residence units and 10 commercial buildings. Mr Lim Ming Yan, President & Group CEO of CapitaLand Limited, said this scale gives the group a “strong base” to grow its businesses “without compromising on recurring income”. He added that the group has 50 projects in the pipeline, valued at about S$35 billion upon completion.
Source : Channel NewsAsia – 17 Feb 2015