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CapitaLand says it posted a net profit of $591.5 million for the first six months of the year (1H2010) and a net profit of $476.1 million in 2Q2010. This compares to losses of $114.1 million in 1H2009 of $156.9 million in 2Q2009.
CapitaLand says the strong profit growth compared to the same period last year reflects a recovery in Singapore and the key markets it operate in. Excluding the impact of revaluations and impairments, 1H2010 net profit was $382.7 million, more than double compared to 1H2009 on the same basis.
Revenue for 2Q2010 grew 48% year-on-year to $873.9 million. Revenue from CapitaLand’s residential projects in Singapore increased by $301.4 million, mainly from The Seafront on Meyer and Latitude.
In China, there was a reduction due mainly to lower recognition from subsidiaries’ projects, most of the sales having been previously recognised. Rental income from shopping malls rose during the quarter with the increase mainly from malls in Malaysia and China.
Ascott, the group’s serviced residence business unit, also recorded higher revenue as demand for most of its properties improved during the quarter. For 1H2010, revenue was $1.56 billion, 45% higher than that achieved in 1H2009.
CapitaLand’s overseas markets did well in the first six months of 2010. In 1H2010, revenue from overseas operations rose 10% year-on-year to $907.5 million. China and Australia were the main contributors. Revenue from Vietnam continued to increase in line with our strategy of growing the country into our fourth core market.
Group Earnings before Interest and Tax (EBIT) for 1H2010 was $1.19 billion compared to the $40.2 million recorded in the same period last year. The strong performance was mainly driven by higher profits from residential projects in Singapore and China, and a net revaluation gain from investment properties in China. Excluding the impact of revaluations and impairments, 1H2010 EBIT was $792.8 million, 65% higher than 1H2009 on the same basis.
As at 30 June 2010, the group’s net debt-to-equity ratio remained healthy at 0.28.
