Singapore-listed CapitaMalls Asia said its second quarter net profit fell 23.7 percent to S$113 million.
However revenue over the period grew 31.9 percent to S$73 million.
The drop in earnings was attributable to the lower revaluation gain of its properties as compared to the second quarter a year ago.
It also received a lower share of results from its three Chinese private equity funds, which was mainly due to lower foreign exchange gain on US dollar payables.
The firm attributed the increase in revenues in the second quarter to contributions from retail mall fund management entities.
It also cited higher rental incomes from three Malaysian malls.
However, for the first six months of this year its net profit rose 32.3 per cent to some S$210 million.
Its revenue for the same period jumped 36 per cent to about S$148 million.
This is on the back of higher rental income from its majority-owned malls and higher project management fees from its One-North development in Singapore.
Chairman of CapitaMalls Asia Liew Mun Leong said the recycled capital from the successful listing of CapitaMalls Malaysia Trust and monetisation of Clarke Quay has strengthened the firm’s balance sheet.
He added that CMA is well-positioned to pursue up to S$3 billion worth of development and acquisition opportunities.
Going forward, Mr Liew said that CMA is targeting to invest between S$800 million and S$1 billion of that capital in new projects in Singapore, China and Malaysia in the second half of this year.
Source : Channel NewsAsia – 3 Aug 2010