Southeast Asia´s biggest developer posted a net loss of S$156.9 million in the second quarter of 2009 after tax and minority interest compared to a profit of $515.2 million in the same period last year.
CapitaLand said the second quarter loss was due to the revaluations and impairment provisions it had taken in Singapore and overseas during the period as valuations declined due to the unprecedented global economic crisis.
CapitaLand said it had taken revaluations and impairment provisions primarily related to its Singapore office portfolio, real estate assets in Australia and the former Char Yong Gardens site in Singapore.
These include CapitaLand’s share of CapitaCommercial Trust’s revaluation losses.
CapitaLand also said the Group also had offsetting revaluation increases arising mainly from ION Orchard and some assets in China.
CapitaLand was affected by lower sales revenue from its development projects in Australia and Singapore, absence of rental revenue from commercial properties which it had divested and lower operating performance of its serviced residence properties.
However, this was mitigated by higher sales in China and Vietnam.
“Although some stability has been restored in the financial markets, the outlook for 2009 remains uncertain. We continue to focus on strategic capital management and preserving a strong financial position to take advantage of investment opportunities in our core markets,” said Dr Richard Hu, chairman of CapitaLand Group.
“The weaker market valuations of real estate properties are an expected outcome of the ongoing financial crisis. At the operational level, in Singapore, we saw strong buyer response at The Wharf Residence. The high-end market is also seeing positive signs with The Orchard Residences selling another 13 units since May at good prices,” said Liew Mun Leong, president and CEO of CapitaLand Group.
CapitaLand´s net profit excluding revaluations and impairments would have been $124.0 million.
Across the group, the second quarter 2009´s revenue was $591.1 million compared to $820.1 million in the same period last year.
CapitaLand said it had a cash position of $4.2 billion and a net debt-to-equity ratio of 0.43.
In March this year, CapitaLand launched a rights issue raising $1.8 billion
It also reported first quarter net profit of $42.9 million – an 84 percent fall from the $247.5 million it earned in the same period last year.
CapitaLand has residential and commercial projects spread across 20 countries including Australia, China, Vietnam and Japan.
Source : Asia Property Report – 31 July 2009
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