Funan Mall redevelopment that cost $560m, targeted to be completed in Q4 of 2019. (Photo: Capitaland)
CapitaLand saw its net profit for the third quarter of 2017 increase 28.1 percent to $317 million from $247.5 million over the same period last year.
It attributed the hike primarily to fair value gains from “Golden Shoe Car Park, the serviced residence component of Funan integrated development in Singapore and Citadines Biyun Shanghai in China, as well as portfolio gains arising from Wilkie Edge in Singapore, CapitaMall Anzhen in China and the 60 percent stake in CapitaLand Vietnam Commercial Fund I”.
Operating profit, however, dropped 18.8 percent to $204.5 million from $251.8 million previously, due to the lower handover of China residential projects and the divestment of certain Singapore commercial assets.
Group revenue increased 9.7 percent to $1.507 billion, due to higher contribution from Singapore development projects, higher rental revenue from newly opened serviced residences and shopping malls as well as the consolidation of revenue from CapitaLand Retail China Trust (CRCT), CapitaLand Mall Trust (CMT) and RCS Trust (RCST).
“Our active portfolio reconstitution has boosted our results as well as our AUM which stands at $85.0 billion as at end of 3Q 2017,” said CapitaLand president and group CEO Lim Ming Yan.
He revealed that CapitaLand’s $1.28 billion profit for year-to-date September has already surpassed 2016’s full-year profit by eight percent.
CapitaLand noted that residential sales in Singapore remained stable with 108 units sold during the period, taking the total number of units sold in the year to September to 293 with a sales value of $1.15 billion.
“This includes units at Cairnhill Nine, which is fully sold as at July 2017, and Victoria Park Villas, which is 86 percent sold as at 30 September 2017,” it said.
This article was edited by Keshia Faculin.