CapitaLand 1Q 2017 PATMI increases 77.2% to S$386.8 million
CapitaLand Limited achieved total PATMI of S$386.8 million in 1Q 2017, a 77.2% increase compared with 1Q 2016. This was due to improved operating performance, including the sale of 45 units of The Nassim1 , and higher portfolio gains.
Group revenue for 1Q 2017 was S$897.5 million, 0.4% higher than 1Q 2016 due to more handovers from its development projects in China and rental contribution from newly acquired properties. The development projects which contributed to the revenue in China this quarter included One iPark in Shenzhen, Riverfront in Hangzhou, Vista Garden in Guangzhou and Summit Era in Ningbo.
The Group’s EBIT grew 35.0% to S$618.6 million in 1Q 2017, compared with S$458.2 million in 1Q 2016. Likewise, Operating PATMI for the period increased by 121.1% to S$337.8 million. The increase in EBIT was mainly attributable to a gain from the sale of The Nassim, higher handovers from development projects in China, and higher portfolio gains, partially offset by lower revaluation gains from investment properties.
The portfolio gain in 1Q 2017 of S$17.7 million arose mainly from the divestment of a township project in China. Singapore and China remain the key contributors to EBIT, accounting for 84.8% of total EBIT (1Q 2016: 86.1%). Financial highlights 1Q 2017 (S$ m) 1Q 2016 (S$ m) Variance (%) Revenue 897.5 894.2 0.4 Earnings before interest and tax (EBIT) 618.6 458.2 35.0 Total PATMI 386.8 218.3 77.2 Operating PATMI1 337.8 152.8 121.1
Mr Lim Ming Yan, President & Group CEO of CapitaLand Limited, said: “CapitaLand has achieved another quarter of strong growth. The Group’s 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. We have improved our operating PATMI this quarter and will continue to focus on strengthening CapitaLand’s operating PATMI and balance sheet.”
This year, the Group will complete and commence operations of six more shopping malls in China, India, Malaysia and Singapore, as well as the retail components of three Raffles City developments and Capital Square in China. Five of these 10 shopping malls and retail components will open in 2Q 2017. It also expects to open about 2,600 serviced residence units in 2017. CapitaLand has also obtained the Singapore Urban Redevelopment Authority’s provisional permission for the proposed redevelopment of Golden Shoe Car Park into a Grade A office building, and is awaiting the Singapore Land Authority’s assessment of the differential premium payable for the potential enhancement in land use.
Mr Lim added: “Singapore and China continue to be our core markets, while we scale up in markets such as Vietnam. We made our first foray into the Vietnam commercial property market in January 2017 with the acquisition of a prime site in the Central Business District of Ho Chi Minh City to develop our first international Grade A office tower in Vietnam. We will be on a look-out for opportunities to further diversify our business and potentially bring our Raffles City brand there.”
“CapitaLand has secured pre-leases for more than 90% of the retail components of our Raffles City projects in Changning, Hangzhou and Shenzhen of China, slated to open in 2Q 2017. This will add to the steady leasing income generated from our four operating Raffles City projects. Raffles City Chongqing is also on track for completion in phases starting from 2018. As more of our properties become operational, our recurring income will grow.”