Southeast Asia’s largest property developer, CapitaLand, has posted a net profit of S$101.5 million in the first quarter, up 241 percent from the restated net profit of S$29.8 million over the same period last year.
Q1 revenue also rose 39 percent to S$611.5 million, mainly attributed to higher contributions from the group’s developments projects, including The Wharf Residence and The Interlace in Singapore, as well as The Riviera and Beau Residences in China.
CapitaLand’s earnings before interest and tax (EBIT) surged 46 percent to S$283.5 million. This was mainly due to lower foreign exchange losses, higher portfolio gains and higher profits from development projects.
“CapitaLand’s core markets of Singapore, China and Australia accounted for 96 percent of group EBIT in 1Q2011,” said Mr. Liew Mun Leong, CEO and President of CapitaLand Group.
“As we move into our next 10 years of expansion, it is our intention to focus our capital and human resources on building on our success in these core markets by both broadening and deepening our businesses there.”
Mr. Liew noted that the group will continue to develop Vietnam into their fourth core market over time “in a measured and calibrated manner, in line with the macroeconomic situation and market developments there.”
In Singapore, the group is ready for the residential and shopping mall sectors with the acquisition of prime, well-located sites.
“For our commercial business, we will, together with CapitaCommercial Trust, redevelop Market Street Car Park into a Grade A office tower that will be an ultra-modern addition to Singapore’s Central Business District,” he said.
CapitaLand will also strengthen its foundation in China, with two acquisitions that have significantly expanded its residential portfolio to more that 64,000 units.
“We increased our ownership in LFIE Holding, which is building 7,800 homes on a 1.1 million sq m waterfront site in Guangzhou. We acquired a 40 percent strategic stake in Surbana Corporation, which has four townships across China, to accelerate the growth of our newly-created value housing business. It will augment CapitaValue Homes’ plan to build 10,000 to 15,000 value homes annually in China and Vietnam over the next three to five years.”