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CapitaLand Q3 net more than doubles to $563.9m

Boost from fair-value and portfolio gains and China devt projects

CAPITALAND said yesterday that its net profit for the third quarter ended Sept 30 more than doubled from $272.41 million a year ago to $563.93 million, driven by fair value gains from its investment properties, portfolio gains and higher sales of development projects in China.

Its revenue for the quarter jumped 24.6 per cent to $895.77 million, particularly bolstered by sales from its China development projects and the revenue from Raffles City Shanghai.

These gains helped to offset the lower fee-based income, lower rental income due to the divestment of Temasek Tower in April and the deconsolidation of revenue from Ascott Residence Trust (ART), following the reduction of the group’s beneficial interest in ART to 37.5 per cent with effect from March this year.

For the first nine months of this year, CapitaLand’s net profit more than tripled from a restated $559.15 million to $2.08 billion on the back of a 14.9 per cent year-on-year increase in revenue to $2.47 billion.

Its overseas revenue constitutes some 71.7 per cent of the group’s revenue, up from 66.2 per cent a year ago as contributions from its China operations increased.

CapitaLand achieved a record Q3 earnings before interest and tax (Ebit) of $758.6 million, up from a restated $565.2 million.

‘The group continues to see healthy and sustainable growth prospects in Asia and other new markets,’ CapitaLand group chairman Richard Hu said.

‘Given CapitaLand’s substantial financial capacity and capital efficient business model, the group is in a good position to benefit from Asia’s positive growth,’ he added.

Year-to-date, CapitaLand has committed investments of over $8 billion in new businesses and new geographies, CapitaLand group president and chief executive officer Liew Mun Leong said.

He noted that while the group’s core markets of Singapore, China and Australia continue to post stellar results, the group continues to expand its footprint in growth markets of Vietnam, the Gulf Cooperation Council region (GCC) and India.

But the profit received from its associates for the third quarter slumped 82.8 per cent to $35.27 million.

CapitaLand’s subsidiary, The Ascott Group, saw net profit for the third quarter slip 41 per cent from a year back to $34 million as it received lower portfolio gains and incurred higher expenses for assets under development.

But its revenue for the quarter grew 17 per cent year-on-year to $116.55 million, with gains mainly coming from its serviced residences in Europe, North Asia, Singapore and South-east Asia.


Source: Business Times 27 Oct 07

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