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It said net profit fell 82.7 per cent to $42.9 million for the three months ended March 31, noting that earnings in the same period last year had been inflated by one-off gains of $141.4 million. They were mainly from the sale of a stake in Hitachi Tower and a Sarkies Road property.
Chief executive Liew Mun Leong said in a statement: 'We do not expect a quick or sharp turnaround in global property markets. CapitaLand will continue to take a conservative and proactive approach to capital management, and focus on delivering projects that generate sales, cash flow and profits.'
Revenue fell 22.9 per cent to $487 million because of lower sales from development projects and lower rental revenue.
Last year, revenue had been boosted by the completion of a large-scale project, Varsity Park Condo, in February. Also, rental income from office properties was higher because of contributions from One George Street - sold last July.
In addition, the firm's business unit in China saw lower first-quarter revenue this year because of the divestment of two properties: Raffles City Shanghai and Capital Tower Beijing. These had made strong contributions to revenue last year.
Earnings per share for the quarter came to 1.2 cents, down from a restated 7.3 cents. Net asset value per share fell from $3.78 as at Dec 31, to $2.98 as at March 31.
Buying sentiment for residential projects is likely to remain cautious this year, but CapitaLand expects its earnings to benefit from maiden contributions from The Seafront on Meyer and The Orchard Residences. It also expects resilient returns on office and industrial rentals despite the economic slowdown.
The company is optimistic about its residential projects in China, as it sees signs of economic stability there and a return of consumer confidence.
CapitaLand shares closed six cents down at $2.59 yesterday.
JOANNA SEOW
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