CapitaLand's full year profit up 0.6% to $1.5b

Thanks to the higher recurring income from CapitaGreen.

CapitaLand reported a slightly higher net profit for the year at $1.5b, a 0.6% increase from last year's $1.495b.

The group said this came on the back of improved operating performance, as it recorded a higher operating PATMI of S$865.3 million. Excluding gains from the change in use, operating PATMI improved 27.8% to S$834.8 million compared to the S$653.0 million in FY 2015, driven by the higher handover of residential units in China and higher recurring income from CapitaGreen in Singapore and its shopping mall business in China.

For the whole year, the group's revenue spiked 10.3% to $5.3b due to the higher handover of development projects in China and rental income from the serviced residence business. The development projects which contributed to higher revenue in China in the quarter under review included One iPark in Shenzhen, Riverfront in Hangzhou, The Metropolis in Kunshan and Vista Garden in Guangzhou.

CapitaLand chairperson Ng Kee Choe said the group has remained resilient for the past year.

"Nonetheless, we face an uncertain and unpredictable operating environment and economic headwinds in Singapore and China, our core markets. In line with our 2016 performance, the Board is pleased to propose a dividend of 10 Singapore cents a share for FY 2016," he said.

Meanwhile, group CEO Lim Ming Yan believed CapitaLand achieved a commendable performance in 2016 despite a challenging environment.

"Our ongoing focus to strengthen our operating PATMI and balance sheet has further increased the Group’s financial strength. Notably, operating PATMI for FY 2016 was S$865.3m, the highest achieved since CapitaLand was listed in 2000, contributing 73% of total PATMI – nearly double the 40% just five years ago. Our optimal asset mix has enabled us to deliver a steady stream of recurring income from our investment properties and management contracts, whilst we continue to realise gains from our trading properties," Lim noted.

For the past year, CapitaLand sold a record total of 12,789 homes. In Singapore, the Group sold 571 residential units, up significantly from last year's 244 units. This number has a sales value of $1.4b, almost double than last year's $559m.

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