CapitaLand reported Tuesday its first quarter net profit fell 7.4 percent on-year to S$295.57 million on lower trading income from residential projects in Singapore and China.
Revenue for the quarter ended 31 March dropped 23.8 percent on-year to S$1.05 billion as fewer residential units were handed over than in the year-ago quarter, CapitaLand said in a filing to SGX after the market close.
“Recurring rental income from new acquisitions, including CapitaLand’s portfolio of multifamily properties in the USA and a commercial property in Europe acquired in 2018, partially mitigated the lower revenue from our residential trading business,” the statement said.
The share of results of associates fell 49.5 percent on-year to S$75.98 million in the quarter on the absence of gains from the divestment of 20 malls in China in the year-ago period, the property developer said.
During the first quarter, CapitaLand said it divested over S$485 million of assets and made more than S$760 million in investments.
In China, CapitaLand sold 91 percent of its launched residential units, or 1,218 units, with a sales value of 2.6 billion yuan, or around S$500 million in the first quarter, despite tighter policy measures on the mainland.
In its outlook, CapitaLand said it expected to launch two Singapore residential projects by the third quarter: One at the current site of the Pearl Bank Apartments and the other at Sengkang Central, with 774 and 680 homes, respectively. It also pointed to its successful opening of the Jewel Changi Airport in April, while the redeveloped Funan mall is expected to open in June.
Lee Chee Koon, president and group CEO of CapitaLand, pointed to the proposed acquisition of Ascendas-Singbridge, in an S$11 billion deal, as a growth driver ahead.
“This strategic combination will bring us complementary asset classes and geographies that will ensure sustainable growth. It will also strengthen our development pipeline and expand our REITs and funds,” Lee said in the statement. “This year, CapitaLand has already launched two new funds and we will ride on the momentum to further augment our fund management business.”