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CapitaLand cites Singapore, China contributions for 97% YOY rise in Q2 profit

In the quarter ended June 30, CapitaLand Ltd. recorded a year-over-year hike of 97.0% in profit after tax and minority interests, or PATMI, to S$579.3 million from S$294 million.

The Singapore-listed developer attributed the increase to improved operating performance and higher revaluation gains from investment properties in China and Singapore, as well as higher portfolio gains from the 1.56 billion-Chinese-yuan sale of the Innov Tower in China and the divestment of 18 rental housing assets in Japan.

CapitaLand's revenue for the second quarter was recorded at S$992.4 million, a 12.3% descent from the S$1.13 billion logged in 2016. The company said the revenue fall is due to lower contributions from Singapore projects that were partially cushioned by higher contributions from China.

The company's earnings before interest and taxes, or EBIT, during the comparable period increased by 67.1% to S$987.8 million, while its operating PATMI leapt 20.5% to S$206.8 million, from S$591.1 million and S$171.6 million, respectively. CapitaLand noted that 88.0% of its EBIT was contributed by operations in Singapore and China.

The group also highlighted the expansion of its serviced residence arm, The Ascott Ltd. Year-to-date, the unit debuted its Citadines brand in the U.S., acquired properties in Brazil and launched its new co-living lyf brand in China and Singapore.

"The positive momentum of our mall's network expansion as well as Ascott’s global platform will provide key data points on the flow of people, businesses and capital for us to make major capital deployment decisions," President and CEO Lim Ming Yan said in a statement.

As of Aug. 2, US$1 was equivalent to S$1.36 and 6.72 Chinese yuan.