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CapitaLand’s net profit plunges 36.6% to S$294M
No thanks to smaller gains from property revaluation.
As a result of stumpy fair value gains from property revaluation, CapitaLand Limited’s total PATMI went down 36.6% to S$294 million in 2Q16 compared to S$464 in the same period a year ago. This is despite higher contributions from shopping malls and development projects in China, higher contribution from CapitaGreen in Singapore, as well as its serviced residence business.
Media release from the real estate giant claimed improved operating performance mitigated the decrease which could have been worse due to the sluggish market.
“CapitaLand’s operating performance has remained robust in an environment of slow economic growth and market uncertainties. Our recurring income provides stability and resilience,” said Lim Ming Yan, CEO of CapitaLand.
To try to make a turnaround, the company set to focus on its core markets in Singapore and China and other growth markets in Vietnam and Indonesia, Lim added.
“In addition to capital recycling and portfolio optimisation, we will also leverage our fund management platform and management contracts to grow our assets under management. With our strong balance sheet, we are well-positioned to seize attractive investment opportunities, to grow our recurring income and deliver sustainable returns in the future,” he said.
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