Singapore's largest developer CapitaLand said on Friday that net profit for its third quarter ended September 30, 2008 fell 25.6 per cent to S$419.4 million, from S$563.9 million a year ago.
Revenue in 3Q 2008 was fell to S$597.2 million, down 33.3 per cent from S$895.8 million in 3Q2007. CapitaLand was hit by lower sales revenue from development projects in the core markets. But the decline in turnover was mitigated by stronger rentals from investment properties and higher fee-based income from real estate investment trusts (Reits) and funds under the group's management, it said.
Earnings for 3Q 2008 were also boosted by gains from the divestment of Capital Tower Beijing in China and 1 George Street in Singapore, as well as the injection of the Raffles City properties in China into the Raffles City China Fund.
CapitaLand's assets under management stood at S$24.8 billion as at 30 September 2008, up 18 per cent compared to the previous quarter.
CapitaLand is well-positioned to ride out the global financial and economic uncertainties, said CapitaLand chairman Richard Hu. 'It has the strong balance sheet, liquidity and diversified sources of funding necessary to act on investment opportunities that will arise in the current capital-constrained environment,' he said.
Chief executive Liew Mun Leong pointed out that the company has strengthened its balance sheet by increasing its cash position to S$4.2 billion.
This strong balance sheet will be particularly useful in the current global financial crisis which has brought down not only Wall Street's blue chip financial institutions but also created in its wake a global recessionary environment,' Mr Liew said. 'With the situation deteriorating rapidly, we are strategically watching the distressed markets, very carefully seeking out opportunities to make the right acquisitions at the right price.'
CapitaLand will continue to seek out opportunities as before, focusing capital and human resources into its existing established sectors of residential, retail, commercial, hospitality, integrated developments and financial services in core markets, he added.
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