CapitaLand Income Soars To $913m In Second Quarter

Source : The Straits Times, Wed, Aug 01, 2007

RISING property values and sizzling home sales in Singapore and in China sent second-quarter net profits at CapitaLand soaring nearly fivefold to a record $912.6 million.

Net profits in the second quarter lifted CapitaLand's first-half earnings to $1.52 billion - already surpassing the firm's record full-year profit last year of $1.02 billion.

Almost half of this first-half gain came from an upward revaluation of CapitaLand's portfolio, an exercise the developer will now undertake every six months.

The revaluation, mostly for office properties, amounted to a $647.4 million gain. Excluding this, profit for the first half would have been $873.3 million - still three times more than the $157.2 million recorded in the same period last year.

Revenue for the three months to June 30 rose 21.2 per cent to $935.6 million. The first-half figure, meanwhile, rose 9.9 per cent to $1.57 billion.

Much of these gains came from strong home sales, specially in China, said CapitaLand. The company has sold 1,130 homes there worth $550 million this year.

For the first half, overseas revenue made up 69.7 per cent of the group's overall revenue, CapitaLand said yesterday.

CapitaLand's Singapore residential unit also did well, recording a 146 per cent rise in pre-tax earnings. The developer has sold 1,260 homes in Singapore worth $2.87 billion so far this year.

These include 123 out of 175 units at The Orchard Residences, where prices have hit a high of $5,500 per sq ft (psf) for a penthouse unit, CapitaLand said.

Its other project in Singapore - The Seafront on Meyer in Katong - had 252 units sold out of 327 in all. Prices range from $1,400 psf to $2,000 psf.

The rest of CapitaLand's other segments also turned in good performances.

In particular, pre-tax earnings for its commercial division jumped 10 times to $1.1 billion in the first half, partly due to asset revaluation and the sale of Temasek Tower.

For its retail unit, pre-tax earnings more than trebled to $144.2 million on the back of higher fee income and contributions from Clarke Quay, and portfolio revaluations.

CapitaLand president and chief executive Liew Mun Leong said yesterday that all of the company's units have done 'exceptionally well' across different countries.

'More importantly, they have put in place future growth plans,' he said.

These include 'having a pipeline of assets to grow their portfolio', such as for the office and retail segments. CapitaLand also has more than five million sq ft of landbank for residential development in Singapore.

One of the sites to be launched this year is Latitude in Jalan Mutiara, on the former Dragon View Park estate.

Earnings per share for the second quarter jumped nearly six times to 32.6 cents, from 5.7 cents a year earlier.

Group net asset value per share rose to $3.12 as at June 30, from a restated $2.65 as at Dec 31.