Higher revenue recognition from residential sales
in Singapore, China and Vietnam
Singapore, 16 April 2010 – CapitaLand has achieved a net profit of S$115.4 million
in 1Q2010, 169% higher than the same period last year.
Revenue in 1Q2010 grew 41% to S$687.3 million largely from residential
development projects in Singapore, China and Vietnam, as well as increased
contribution from serviced residences operations. In Singapore, the 69% rise
in revenue to S$261.3 million was mainly due to continued recognition for the Latitude
and The Seafront on Meyer projects. Revenue from overseas operations rose
28% to S$426.0 million, representing 62% of the Group’s 1Q2010 revenue.
The contribution from Vietnam has increased due to revenue recognition for The Vista
in Ho Chi Minh City.
Group Earnings before Interest and Tax (EBIT) for 1Q2010 was S$309.5 million,
75% higher than that achieved in 1Q2009. This was driven by strong profits
from residential development projects and higher contributions from joint venture
projects, namely The Orchard Residences in Singapore and Summit Residences in
Ningbo, China.
As at 31 March 2010, CapitaLand had a cash balance of S$5.7 billion and net
debt-to-equity ratio of 0.27.
FINANCIAL HIGHLIGHTS
S$ million
1Q2010 1Q2009
Revenue
687.3
487.0
Earnings before interest and tax (EBIT)
309.5
176.4
Finance costs
(103.1) (102.2)
Profit after tax and non-controlling interests (PATMI)
115.4
42.9
PATMI excluding revaluations/ impairments
111.0
47.1
Dr Richard Hu, Chairman of CapitaLand Group, said: “Asia has emerged from
the crisis with renewed economic growth. The economies of Singapore and China –
two of the Group’s core markets – are expected to grow 7-9% and 9-10% respectively
in 2010. CapitaLand remains confident of Asia’s long-term growth potential and is
well-positioned to ride on the recovery of real estate markets and improved business
confidence in these markets. We will continue to deploy funds to our businesses in
China and Vietnam, and the serviced residence and integrated shopping mall
businesses, while being focused on demand fundamentals and disciplined in our
investment management.”
Page 2
Mr Liew Mun Leong, President and CEO of CapitaLand Group, said: “In Singapore,
we have sold residential units valued at about S$800 million in the first quarter, mainly
from Urban Suites. Phase two sales of The Interlace started this month and
approximately 75% of the 590 units released have been sold to-date. Office rentals in
Singapore have started to stabilise with the improvement in business confidence.
In China, there is sustained underlying demand from homebuyers and we have sold
about 800 residential units this quarter. We doubled our property portfolio in China
with the acquisition of Orient Overseas Developments Limited (OODL) and its seven
prime sites present opportunities to build homes, offices, shopping malls and serviced
residences. In Vietnam, we entered into a joint venture to develop our second
residential site in Hanoi and will further grow our presence through strategic
partnerships. CapitaMalls Asia deepened its presence in western China with two
acquisitions in Chengdu, expanding its portfolio to 87 retail properties in five
countries. Ascott, our serviced residence business, extended its footprint to Danang,
Vietnam with the city’s first international serviced residence brand. We will continue to
seek strategic opportunities such as the acquisition of OODL.”
Issued by: CapitaLand Limited (Co. Regn.: 198900036N)
Date:
16 April 2010
Analyst Contact
Media Contact
Harold Woo
Basskaran Nair
SVP, Investor Relations
SVP, Corporate Marketing and Communications
Tel: +65 68233 210
Tel: +65 68233 554
Email: harold.woo@capitaland.com
Email: basskaran.nair@capitaland.com
For the full CapitaLand Limited Financial Statements announcement and slides,
please visit our website www.capitaland.com.
This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance,
outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of
risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry
and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties,
competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands,
customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental
and public policy changes, and the continued availability of financing in the amounts and the terms necessary to support
future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on
the current view of management on future events.
