CapitaLand, a Singapore property developer recorded an increase in its quarter three 2016 net profits by 28.4% to $247.5% from $192.7 million recorded in 2015 on y-o-y. This was due to increased sales in Singapore and overseas with home sales in Singapore tripling.
The revenue also increased by 27.7% to $1.374 billion in the same period. This was due to higher incomes from its China and Singapore residential projects, more rental income from its Singapore commercial portfolio and its business in serviced residence.
In its SGX filing, CapitaLand attributed the increased operating profits that rose by 54.5% to higher contributions from its residential developments in China and Singapore, its shopping malls in China and Malaysia, the serviced residences it recently acquired and its Singapore commercial portfolio.
The residential developments which made higher revenue contributions in quarter three were Shanghai’s New Horizon, Beijing’s Vermont Hills, Hangzhou’s Riverfront and Singapore’s Cairnhill Nine and The Nassim.
(An image of Cairnhill Nine)
The Earnings before interest and tax increased in quarter three by 7.7% to S$494.4 m in y-o-y from S$459.1 m recorded in Q3 2015. China and Singapore continued to be the main contributors at 80.4% of the profits.
“The Group will continue to grow its assets through portfolio optimization, management contracts, capital recycling and fund management,” said CapitaLand’s Group CEO, Lim Ming Yan.
Lim added that the optimal asset mix of the group offered stability and a strong consistent stream of income despite the market being volatile.
In October, CapitaLand announced that it was setting up in China a private investment vehicle of $1.5 billion. This will be used to invest in major cities in china in prime integrated developments. The investment vehicle called Raffles City China Investment Partners III is the 3rd in China. It is also the largest private vehicle for raising capital by CapitaLand.
CapitaLand is a real estate company that is listed and headquartered in Singapore. Its main markets are China and Singapore while it has identified Vietnam, Malaysia and Indonesia as its growth markets.
You may be keen to read on another development by CapitaLand called the Victoria Park Villas.