CapitaLand’s net profit rose 13.6% in Q3

View of The Nassim condominium project.

CapitaLand’s net profit for the third quarter of 2018 rose 13.6 percent to $362.2 million from $206.3 million in Q3 2017, on account of higher operating profit and gains from asset recycling.

Operating profit for Q3 2018 increased 13.3 percent to $233.7 million, primarily due to contributions from newly acquired and opened investment properties in China, Germany and Singapore.

Revenue, on the other hand, dropped 16.9 percent to $1.26 billion, mainly due to lower contributions from development projects in China and Singapore.

CapitaLand noted that the decline was partially mitigated by higher rental revenue from newly opened and acquired properties in China, Germany and Singapore as well as the consolidation of revenue from CapitaLand Retail China Trust, CapitaLand Mall Trust and Raffles City Singapore Trust with effect from August 2017.

For the first nine months of the year, net profit dipped 0.4 percent to $1.287 billion, while revenue jumped 16.8 percent to $3.978 billion, excluding gains from the sale of The Nassim.

“CapitaLand’s disciplined capital recycling continues to gain momentum. We have divested $4 billion worth of assets and deployed the capital into $6.1 billion worth of new investments to date this year. These include acquisitions to secure a good development pipeline as well as higher yielding assets that are immediately income producing,” said Lee Chee Koon, president and Group CEO of CapitaLand Group.

He revealed that the company is “actively building a resilient and diversified portfolio across asset classes and key geographies” where they have dominant footholds.

In fact, it has expanded into complementary asset segments including the US multifamily asset class – a move which is in line with CapitaLand’s strategy of “maintaining a balance between emerging and developed markets, while targeting an optimal mix between trading and investment properties”.

During the third quarter of 2018, the company acquired a mixed-use site at Sengkang Central, another site where CapitaLand intends to develop the first co-living property in one-north, a prime site in Ho Chi Minh City and two residential sites in Guangzhou.

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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg