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Comparative quarter last year benefited from substantial divestment gains

PROPERTY giant CapitaLand has posted a 32.9 per cent year-on-year drop in net earnings to $281.3 million for the third quarter ended Sept 30, 2009.

Vietnam project: CapitaLand is targeting an official launch for its Mulberry Lane project in Hanoi in early 2010

Earnings before interest and tax (Ebit) slipped 34.9 per cent to $450.6 million. The fall in profit was due to the Q3 2008 bottom line being boosted by Ebit gains of $441.6 million from the divestments of One George Street in Singapore, Capital Tower Beijing and the Raffles City properties in China.

CapitaLand said its Q3 2009 earnings were largely driven by strong profit recognition from its residential projects as well as a $52.8 million gain from selling its remaining stake in Hong Kong’s Link Reit.

The group achieved revenue of nearly $1.05 billion in Q3 2009, up 75.2 per cent from the same year-ago period.



The jump was due to higher revenue recognition for the group’s development projects in Singapore (thanks to projects such as The Seafront on Meyer and Latitude), China and Vietnam, partly offset by an absence of acquisition fee income and rental revenue from commercial properties divested last year. Continue reading →

STRONG gains from sales in Singapore, China and Vietnam helped to make the third quarter more cheerful for CapitaLand, but its results were still down substantially from a year ago.

The property giant said in a results statement that ‘while business conditions are improving’, it remains vigilant.

‘Operating results will be underpinned by the recognition of profits from residential sales in Singapore and China, and ongoing income contributions from Raffles City Beijing and Ion Orchard,’ it added.

The firm reported net profit of $281.3 million for the three months to Sept 30 – better than the numbers from earlier in the year but down 33 per cent on the $419.4 million earnings last year, when it benefited from large divestment gains.

Revenue rose 75 per cent to $1.05 billion on sales of development projects in Singapore, China and Vietnam. Continue reading →