CapitaLand Q2 profits up 4.4% to $605.52m
Higher handover of units in China and new properties boosted revenue.
CapitaLand’s profits for the second quarter of 2018 rose by 4.4% to $605.52m from $580.14m, whilst revenue jumped by 35.3% to $1.34b.
According to its financial statement, revenue grew thanks to higher handover of residential units in China; rental revenue from newly acquired/opened properties in Singapore, China and Germany; as well as the consolidation of revenue from CapitaMall Trust (CMT), CapitaLand Retail China Trust (CRCT), and RCS Trust (RCST).
The increase was partially offset by lower contributions from development projects in Singapore. The development projects which contributed to the revenue this quarter were Century Park West in Chengdu, New Horizon in Shanghai, as well as Sky Habitat in Singapore.
In terms of revaluation of investment properties, CapitaLand gained $620.1m from subsidiary projects, other operating income, and the share of results of associates and joint ventures. The higher revaluation gain arose mainly from revaluations of its properties in Singapore, China, and Europe.
For the first half of the year, CapitaLand’s profits dipped by 5% to $924.62m, whilst revenue grew by 43.8% ot $2.72b. The company missed gains from to sale of The Nassim recorded back H1 2017. It also was hit by lower portfolio gains and a net writeback of provision for foreseeable losses.
Excluding gains from The Nassim, operating profit grew 8.8% thanks to higher recurring income from retail and commercial businesses, partially offset by lower contributions from development projects in Singapore and China.