Victoria Park Villas is one of the development projects that contributed to its Q2 revenue. (Photo: Christopher Chitty)
CapitaLand saw its net profit surge 97 percent to S$579.3 million in Q2 2017, thanks to higher revaluation gains and divestments.
Revenue fell 12.3 percent to S$992.4 million from the previous year, primarily due to lower contribution from Singapore development projects, but partially mitigated by higher contribution from China development projects and higher rental income from newly acquired properties.
Development projects that contributed to this quarter’s revenue include Singapore’s Victoria Park Villas as well as Summit Era in Ningbo and Beaufort in Beijing, China.
In a release, the group revealed that it has divested S$2.37 billion worth of assets to date while deploying “S$2.04 billion to higher yielding ventures across various asset types and geographies”.
New investments include office and retail assets in Greater Tokyo, Japan; Innov Center in Shanghai, China; as well as serviced residence properties including effective stakes in third party operating platforms within China, Australasia and the US.
CapitaLand also intends to deploy an additional S$1.64 billion for Golden Shoe Car Park’s redevelopment based on its 90 percent stake of the new integrated development.
“We will continue to reconstitute our portfolio by realising value of optimised assets and to redeploy capital to higher yielding assets and ventures,” said CapitaLand president and group CEO Lim Ming Yan.
“The positive momentum of our mall’s network expansion as well as Ascott’s global platform will provide key data points on the flow of people, businesses and capital for us to make major capital deployment decisions.”
The group’s mall network expansion strategy saw CapitaLand securing six management contracts in China and Singapore, bringing its portfolio to almost 300,000 sq m within a year. Its serviced residence arm, The Ascott, has expanded its portfolio with the addition of 35 properties.
This article was edited by Denise Djong.