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Thread: CapitaLand posts 41% jump in profit

  1. #1
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    Default CapitaLand posts 41% jump in profit

    http://www.straitstimes.com/archive/...rofit-20130427

    CapitaLand posts 41% jump in profit

    Published on Apr 27, 2013

    By Rachel Scully


    STRONG sales from residential properties in Singapore and China pushed up first-quarter earnings for real estate giant CapitaLand.

    Net profit jumped 41.2 per cent to $188.2 million for the three months ended March 31 from the same period last year. First-quarter revenue grew 3.2 per cent to $661.9 million.

    Contributions to the healthy showing came from its four strategic business units: CapitaLand Singapore, CapitaLand China, CapitaMalls Asia and Ascott.

    In an announcement yesterday, CapitaLand Singapore said it had sold 544 residential units for $1.3 billion in the quarter. Of these, condominium d'Leedon accounted for 481 units.

    That meant sales in Singapore this quarter were similar to the total residential sales recorded for the full financial year last year.

    In addition, CapitaLand China sold 955 residential units for about $400 million in the quarter, three times more than it did during the first quarter last year.

    Sales from The Metropolis in Kunshan, The Pinnacle and Paragon in Shanghai, The Loft in Chengdu and iPark under Raffles City Shenzhen accounted for the 955 units sold.

    Revenue growth for CapitaMalls Asia in the first quarter was mainly contributed by Olinas Mall, which was acquired last July, and The Star Vista in Buona Vista which opened last September.

    Higher project and management fees in China also contributed to this growth.

    Serviced residences Ascott contributed $92.6 million, up 5.7 per cent, to the group's first quarter revenue from newly acquired properties.

    CapitaLand president and group chief executive Lim Ming Yan said that sustainable growth will be achieved through a sharper focus in the Singapore and China markets.

    Despite the latest round of property cooling measures announced in January, CapitaLand said it remained "cautiously optimistic" about the local housing market.

    In China, urbanisation is growing, and the 150 million people migrating from rural to urban areas will increase demand for housing and other amenities, said CapitaLand.

    Earnings per share for the quarter climbed to 4.4 cents from 3.1 cents in the corresponding quarter last year.

    Net asset value per share rose six cents to $3.61, from Dec 31 last year.

    CapitaLand's share price increased seven cents to $3.65 yesterday.

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  2. #2
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    Default CapitaLand Q1 profit surges 41.2%

    http://www.businesstimes.com.sg/arch...s-412-20130427

    Published April 27, 2013

    CapitaLand Q1 profit surges 41.2%

    Revenue up 3.2% to $661.9m; group sees residential property prices moderating further

    By Felda Chay


    CAPITALAND said yesterday that it expects residential property prices here to moderate further on the back of the government's focus on keeping prices in check and as the latest lot of cooling measures in January takes effect in the coming months.

    But the property giant said the fundamentals of the primary market remain strong, noting that a record 6,277 private residential units changed hands in the first quarter of this year.

    CapitaLand announced yesterday that net profit for its first quarter surged 41.2 per cent to $188.2 million from $133.2 million a year ago.

    A large part of this came from strong sales at d'Leedon, its project with Hotel Properties, Wachovia Development Corporation and a fund managed by Morgan Stanley Real Estate. CapitaLand has been enticing buyers by offering discounts for units there.

    Earnings per share rose to 4.4 cents from 3.1 cents last year. Revenue for the three months to March 31, 2013, climbed 3.2 per cent to $661.9 million from $641.1 million, driven by higher sales from The Interlace, as well as higher progressive revenue recognition from Urban Resort Condominium and Sky Habitat.

    During the quarter, CapitaLand Singapore sold a bumper 544 residential units at a total sales value of $1.3 billion, similar to the unit's total residential sales value for the whole of last year.

    Sales at d'Leedon alone accounted for 481 units.

    CapitaLand said in its results presentation that it will continue to look for well-located sites.

    It plans to launch Marine Point and a still-unnamed development in Bishan St 14 - next to Sky Habitat and a joint venture with Mitsubishi Estate Asia - later this year. Marine Point will have 120 units, and the development in Bishan, 700.

    In total, it has some 2,200 units in its project pipeline, which includes The Interlace, d'Leedon and Sky Habitat.

    The group said in its financial statement: "d'Leedon and The Interlace registered good sales in Q1 and we look to ride on the sales momentum to sell the remaining units." It slashed prices by up to 15 per cent at both developments after the cooling measures were introduced.

    Some 250 units remain unsold at The Interlace. d'Leedon has about 400 units left.

    CapitaLand also said it expects to commence revenue recognition for Bedok Residences in the second quarter, while Urban Suites is due for completion by June.

    Meanwhile, CapitaLand China sold 955 residential units at a sales value of 1.9 billion yuan (S$381 million) during the quarter, a three-fold increase over Q1 last year. It has about 3,500 launch-ready units in China, and plans to hand over 3,000 units this year.

    CapitaLand president and CEO Lim Ming Yan said: "We'll sharpen our focus on the markets of Singapore and China for sustainable growth. In Singapore, the longer-term outlook remains positive; in China, urbanisation, economic growth and the promotion of domestic consumption will give us a strong platform to grow the business.

    "We will continue to leverage on our expertise in the real-estate value chain, from land acquisition, development and operations to capital management."

    Singapore and China remain the key contributors to Ebit (earnings before interest and taxes), accounting for 81.2 per cent of total Ebit compared to 56.3 per cent in Q1 last year. Ebit contribution from Singapore was $176.6 million, or 45.7 per cent of total Ebit; China contributed $137.2 million or 35.5 per cent.

    Revenue from CapitaLand's service residence arm, The Ascott Ltd, rose 5.7 per cent to $92.6 million from properties acquired last year. Ebit, however, fell 49 per cent to $7.5 million from a year ago when it was bolstered by a one-time receipt of insurance settlement.

    CapitaLand said Ascott will continue to deepen its presence in markets such as China, and seek investment opportunities in key Asian and European cities.

    Net asset value per share for CapitaLand as at March 31 was $3.61, against $3.55 at end December last year. Cash and cash equivalents held at the end of Q1 was $5.4 billion, compared with $6 billion a year ago.

    Yesterday, CapitaLand's shares closed higher 2 per cent, or seven cents, at $3.65.

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