Capitamalls Asia (CMA), CapitaLand’s largest listed shopping mall developer in Asia, has announced that its net profit for the third quarter rose 14 percent to $68 million, from $59.6 million over the same period last year.
The increase in Q3 earnings came despite a 22 percent decline in revenue to $42.5 million from $54.5 million, attributed mainly to the divestment of three Malaysian shopping malls to CapitaMalls Malaysia Trust, as well as Clarke Quay in Singapore to CapitaMalls Trust.
Net profit in the third quarter jumped year-on-year, as the company sees higher profit recognitions from The Orchard Residences project, higher contributions from ION Orchard mall, CapitaMall Trust and from its China private equity funds, and new contributions from the newly listed CapitaMalls Malaysia Trust.
Liew Mun Leong, chairman of CMA, said that economic growth remains strong in Singapore and China, two of the company’s largest markets.
“This positive outlook should underpin the performance of our portfolio for the coming quarters. To tap on this growth, we will continue to grow our shopping mall portfolio through selective and strategic acquisitions,” he said.
Lim Beng Chee, chief executive of CMA, said that the company remains confident of achieving its goal of investing between $800 million and $1 billion in new developments in the second half of 2011, with its “strong balance sheet, cash position and growth opportunities in Asia.”