reporter2
22-02-12, 18:04
http://www.businesstimes.com.sg/sub/companies/story/0,4574,477818-1329335940,00.html?
Published February 15, 2012
CapitaLand Q4 profit down 20% at $477m
The results brought CapitaLand's full-year 2011 net profit to $1.06b
By MINDY TAN
PROPERTY giant CapitaLand yesterday posted net profit of $476.6 million for the fourth quarter ended Dec 31, 2011, a 20 per cent fall from the previous corresponding quarter's restated earnings of $596 million.
The drop resulting from lower development profits and portfolio gains was partially offset by lower impairment losses. Q4 earnings per share were 11.2 cents, down from 13.8 cents.
Q4 revenue climbed 17.3 per cent to $1.06 billion, helped by higher contributions from development projects in the group's core markets of Singapore, China, Australia, and Vietnam.
'Rental revenue from our shopping mall business was also higher this quarter but that from our serviced residence operations and fee-based revenue were however lower,' said CapitaLand.
The results brought CapitaLand's full-year 2011 net profit to $1.06 billion - down 25.8 per cent from a restated $1.43 billion. This is the sixth consecutive year that earnings exceeded $1 billion. Revenue for FY2011 fell 10.8 per cent to $3.02 billion.
Despite cooling measures aimed at the residential market in both Singapore and China, the two countries will remain 'key' to CapitaLand's strategy, said Liew Mun Leong, president and chief executive of CapitaLand Group.
While maintaining the view that the 10 per cent Additional Buyers Stamp Duty (ABSD) introduced late last year was 'too harsh', Mr Liew said he expects the group's residential business in Singapore to remain healthy.
Its residential arm intends to progressively release new phases at The Interlace and d'Leedon in the coming year and launch Sky Habitat, its condominium project in Bishan Central in Q2 2012.
'We will also seek to increase our office footprint in Singapore's Central Business District and in commercial hubs located next to Mass Rapid Transit stations,' said Mr Liew.
China - which contributed $253.4 million in revenue in Q4, a 61.4 per cent increase over Q4 2010's restated figure of $156.9 million - continues to be a hot favourite for the group, despite the property cooling measures which CapitaLand says is unlikely to be relaxed before year-end.
Said Mr Liew: 'I'm not overly concerned about the China market being affected by this measure because we like them to have cooling measures so it's not speculative . . . If they want to turn the market back, (they can do so) within weeks.'
Indeed, the country's fundamentals are intact, stressed Mr Liew, pointing to urbanisation, strong domestic consumption, and increasing affluence that continue to underpin demand.
China constitutes 38 per cent of the group's total assets, a figure the group hopes to grow to 45 per cent, he added.
It is also for these reasons that Mr Liew is bullish on the potential of shopping malls within Asia.
'(For) China to grow domestic consumption to 50 per cent . . . we estimate they will need 12,000 shopping malls. Today, China has roughly 2,000. So there's a big gap in supply,' said Mr Liew.
CapitaLand's group net asset value per share rose to $3.51 as at end-2011 from $3.29 a year earlier. The counter closed trading unchanged at $2.90 yesterday.
Shareholders will receive a first and final dividend of six cents per share and a special dividend of two cents per share for the financial year.
The group said it intends to further delve into mixed-developments as a means of riding on the expertise of its various business units.
'I'd like to see more mixed-development projects in China. For example, in Singapore, we've started doing it for Jurong's Westgate,' said Mr Liew.
Published February 15, 2012
CapitaLand Q4 profit down 20% at $477m
The results brought CapitaLand's full-year 2011 net profit to $1.06b
By MINDY TAN
PROPERTY giant CapitaLand yesterday posted net profit of $476.6 million for the fourth quarter ended Dec 31, 2011, a 20 per cent fall from the previous corresponding quarter's restated earnings of $596 million.
The drop resulting from lower development profits and portfolio gains was partially offset by lower impairment losses. Q4 earnings per share were 11.2 cents, down from 13.8 cents.
Q4 revenue climbed 17.3 per cent to $1.06 billion, helped by higher contributions from development projects in the group's core markets of Singapore, China, Australia, and Vietnam.
'Rental revenue from our shopping mall business was also higher this quarter but that from our serviced residence operations and fee-based revenue were however lower,' said CapitaLand.
The results brought CapitaLand's full-year 2011 net profit to $1.06 billion - down 25.8 per cent from a restated $1.43 billion. This is the sixth consecutive year that earnings exceeded $1 billion. Revenue for FY2011 fell 10.8 per cent to $3.02 billion.
Despite cooling measures aimed at the residential market in both Singapore and China, the two countries will remain 'key' to CapitaLand's strategy, said Liew Mun Leong, president and chief executive of CapitaLand Group.
While maintaining the view that the 10 per cent Additional Buyers Stamp Duty (ABSD) introduced late last year was 'too harsh', Mr Liew said he expects the group's residential business in Singapore to remain healthy.
Its residential arm intends to progressively release new phases at The Interlace and d'Leedon in the coming year and launch Sky Habitat, its condominium project in Bishan Central in Q2 2012.
'We will also seek to increase our office footprint in Singapore's Central Business District and in commercial hubs located next to Mass Rapid Transit stations,' said Mr Liew.
China - which contributed $253.4 million in revenue in Q4, a 61.4 per cent increase over Q4 2010's restated figure of $156.9 million - continues to be a hot favourite for the group, despite the property cooling measures which CapitaLand says is unlikely to be relaxed before year-end.
Said Mr Liew: 'I'm not overly concerned about the China market being affected by this measure because we like them to have cooling measures so it's not speculative . . . If they want to turn the market back, (they can do so) within weeks.'
Indeed, the country's fundamentals are intact, stressed Mr Liew, pointing to urbanisation, strong domestic consumption, and increasing affluence that continue to underpin demand.
China constitutes 38 per cent of the group's total assets, a figure the group hopes to grow to 45 per cent, he added.
It is also for these reasons that Mr Liew is bullish on the potential of shopping malls within Asia.
'(For) China to grow domestic consumption to 50 per cent . . . we estimate they will need 12,000 shopping malls. Today, China has roughly 2,000. So there's a big gap in supply,' said Mr Liew.
CapitaLand's group net asset value per share rose to $3.51 as at end-2011 from $3.29 a year earlier. The counter closed trading unchanged at $2.90 yesterday.
Shareholders will receive a first and final dividend of six cents per share and a special dividend of two cents per share for the financial year.
The group said it intends to further delve into mixed-developments as a means of riding on the expertise of its various business units.
'I'd like to see more mixed-development projects in China. For example, in Singapore, we've started doing it for Jurong's Westgate,' said Mr Liew.