CapitaMalls Asia’s net profit in 2009 jumped 235% to S$388m

CapitaMalls Asia’s net profit in 2009 jumped 235 per cent on-year to S$388 million.

In its maiden full-year results since listing last November, CapitaMalls Asia said the boost to the bottom line came mainly from its China market. It also said it may benefit from the recent moves by the Chinese government to tighten credit.

Consumer spending in Asia has remained robust despite the economic downturn, benefiting groups like CapitaMalls Asia.

Its 2009 net profit soared over three-fold amid improved valuations of its properties, which span five countries in Asia.

Lim Beng Chee, CEO of CapitaMalls Asia, said: “Singapore, China and Malaysia are experiencing a huge growth in their property income, mainly because of the underlying growing consumer market … And we’ve also opened a total of 11 malls in 2009, which also contributed to the bottom line.”

The top line for the period rose 11.6 per cent on-year to S$229 million, due to higher contribution from existing malls and investment activities.

CapitaMalls Asia said China is expected to be a major market, which it hopes will form 40 per cent of its assets in future.

The company also said the recent moves by China to tighten credit may not adversely affect its operations there. But it said any impact on its Chinese competitors may provide some opportunities for growth.

Mr Lim said: “Most of the property players are actually residential developers. In fact, some of them may have non-core retail properties. Given the credit situation, they may want to go back to their core residential businesses and that may present some opportunities for us.”

As for its core Singapore portfolio, CapitaMalls Asia said it does not have a time frame for selling its ION Orchard property.

It said it will wait until the sales of the residential portion of that project are sold before a sale is planned.

Source : Channel NewsAsia – 3 Feb 2010

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