CapitaLand Limited profit up 31.3% to S$133.2 million

The Group's Earnings before Interest and Tax soared to S$331.4 million, 16.9% higher than 1Q 2011, thanks to higher portfolio gains, fair value gains of investment properties and slightly higher operating income.

Within the course of the year, the Group plans to release new phases from The Interlace, d’Leedon, Urban Resort Condominium and Sky Habitat in Singapore, subject to market conditions. 

In a release by CapitaLand Limited, it was announced that for the quarter which ended 31 March 2012, the Group achieved Earnings before Interest and Tax of S$331.4 million, 16.9% higher than 1Q 2011. The increased EBIT was due to a slightly higher operating income, higher portfolio gains and fair value gains of investment properties.

The Group’s core markets of Singapore, China and Australia accounted for 79.0% of total EBIT. Singapore’s contribution towards EBIT was S$128.8 million or 38.9%, while overseas contribution was S$202.6 million or 61.1% of the Group’s total EBIT.

Mr Ng Kee Choe, Incoming Chairman of CapitaLand Group, said: “CapitaLand achieved a net profit of S$133.2 million and revenue of S$641.1 million for the first quarter of 2012. This is a commendable set of numbers given the volatile economic environment. The global economic climate remains uncertain. While the US economy appears to have turned the corner, the pace of recovery remains weak. The European debt crisis continues to take centre stage as many Eurozone countries face political uncertainty and rising borrowing costs. China’s official forecast has been revised down from 8% to 7.5%, but its outlook remains robust as the government is taking proactive steps to ensure a sustainable GDP growth. Our consistent ability to seize opportunities underscores our commitment to deliver results. With our healthy balance sheet, I firmly believe that we will be able to continue to steer the course to overcome global economic challenges for the Group’s long-term profitable growth.”

Mr Liew Mun Leong, President and CEO of CapitaLand Group, said: “Our overseas operations continued with its growth momentum and contributed significantly to EBIT, accounting for S$202.6 million or 61.1% of the Group’s total EBIT. In fact, the Group’s three core markets of Singapore, China and Australia accounted for 79.0% of total EBIT. This reflects that we are on the right track with our 3+3+2 market asset strategy, with a focus on Singapore, China, Australia as core markets; Europe (serviced residences only), Malaysia and Vietnam as secondary markets; and Japan and India as opportunistic markets. Our investment in the core markets has certainly laid the foundation for our future growth.”

“Singapore and China will remain as key focus markets for new investments. While the markets in both Singapore and China are adjusting to the official cooling measures, the Group expects the longer term demand to remain healthy.”

“The Group’s ongoing capital recycling and prudent capital management initiatives will continue to ensure that our balance sheet is healthy. Our net debt equity ratio of 0.36 and a cash balance of S$6.0 billion offer flexibility in the current volatile climate.”

Moving ahead, in Singapore, the Group plans to release new phases from The Interlace, d’Leedon, Urban Resort Condominium and Sky Habitat over the course of the year, subject to market conditions. Retail sales continue to grow in Singapore, China and Malaysia. In Singapore, the Group’s shopping mall business will receive a boost when Bugis+, The Star Vista and The Atrium are completed this year. This will increase the number of operational malls to 18 by end 2012.

Ascott, the Group’s serviced residence business, will seek new investments in key cities in Asia Pacific and Europe to expand its footprint, while continuing with asset enhancement initiatives to strengthen its brand and improve service standards.