Revenue also declined 23.8 percent to $1.048 billion, mainly due to lower contributions from residential projects.
CapitaLand saw its net profit drop 7.4 percent to $295.6 million in the first quarter of 2019, from $319.1 million over the same period last year.
The decline was attributed to lower operating profit after tax and minority interests (PATMI) and lower writeback of impairments, partially cushioned by gains from revaluation of properties and asset recycling.
In an SGX filing, the company noted that operating PATMI fell 20.5 percent primarily due to lower contributions from residential projects in China and Singapore.
Revenue also declined 23.8 percent to $1.048 billion, mainly due to lower contributions from residential projects. It was partially mitigated by rental income from new acquisitions, which include a commercial property in Europe and a portfolio of multifamily properties in the USA.
CapitaLand president and group CEO Lee Chee Koon revealed that the group’s proposed acquisition of Ascendas-Singbridge received overwhelming approval from the shareholders during an extraordinary general meeting on 12 April.
“This strategic combination will bring us complementary asset classes and geographies that will ensure sustainable growth. It will also strengthen our development pipeline and expand our REITs and funds,” he said.
“This year, CapitaLand has already launched two new funds and we will ride on the momentum to further augment our fund management business. We will also continue to focus on recycling capital, especially through the divestment of non-core assets; as well as deploying capital in areas where we can be competitive and drive growth.”
Meanwhile, CapitaLand is set to launch two residential developments in Singapore – at the site of Pearl Bank Apartments and in Sengkang Central, which will offer 774 and 680 residential units respectively.
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Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email fiona@propertyguru.com.sg
