CapitaLand reported on Wednesday that its third-quarter net profit rose 13.6 percent on-year to S$362.22 million on asset divestments and higher operating income.
The property developer said it divested Westgate Mall and 18 malls in China, in the quarter, of the 20 it plans to divest on the mainland.
Revenue for the quarter ended 30 September fell 16.9 percent on-year to S$1.26 billion, mainly on lower contributions from Singapore and China development projects, the developer said in a filing to SGX before the market close on Wednesday.
That was partly offset by higher rental revenue from newly acquired or opened properties in Singapore, China and Germany, and from consolidating the revenue of CapitaLand Mall Trust, CapitaLand Retail China Trust and Raffles City Singapore Trust, starting from August, it said.
Cost of sales fell 33.0 percent on-year in the quarter to S$676.36 million, in line with lower revenue, but with a higher proportion of rental revenue, that contributed to a higher gross margin, it said.
Operating profit rose 13.3 percent on-year to S$233.7 million, it said.
CapitaLand has divested S$4 billion worth of assets and used the capital toward S$6.1 billion in new investments this year, which include development-pipeline assets and higher-yielding assets to produce income, the filing said.
“We are actively building a resilient and diversified portfolio across asset classes and key geographies where we already have dominant footholds. With our primary pieces in place, we have expanded into complementary asset segments including the deep and scalable U.S. multifamily asset class,” Lee Chee Koon, president and group CEO of CapitaLand Group, said in the statement.
“Our moves are in line with our strategy of maintaining a balance between emerging and developed markets, while targeting an optimal mix between trading and investment properties,” he said.