SINGAPORE (Aug 8): CapitaLand posted 2Q18 earnings of $605.5 million, 4.4% higher as compared to a year ago, mainly due to higher contributions from newly acquired and opened investment properties in Singapore, China and Germany, and revaluation gains from its portfolio of investment properties.

The 2Q18 results bring 1H18 earnings to $924.6 million. Excluding the gain from the sale of The Nassim, earnings for 1H18 increased 13.9% compared to 1H17.

Group revenue for the quarter increased 35.3% to $1.3 billion on the back of higher handover of residential units in China, rental revenue from newly acquired and opened properties in Singapore, China and Germany, as well as the consolidation of revenue from three REITs with effect from August 2017. The development projects which contributed to the revenue this quarter were Century Park West in Chengdu, New Horizon in Shanghai, as well as Sky Habitat in Singapore.

Collectively, the two core markets of Singapore and China accounted for 74.8% of the group’s revenue.

In Singapore, the group sold 37 residential units in 2Q18 with 33 units remaining in stock. In China, the group handed over 1,486 units with a value of RMB 2.2 billion ($439 million) mainly from the completion of phases from Century Park West in Chengdu, New Horizon in Shanghai and Citta Di Mare in Guangzhou in 2Q18. The group had 8,000 units valued at RMB 16.2 billion which had been sold but not yet handed over as at June 30.

CapitaLand also sold 524 residential units in Vietnam with a sales value of $186 million in 2Q18, over two times higher than the sales value registered in 2Q17.

In its outlook, CapitaLand expects residential sales in Singapore to moderate in the second half of this year as buyers of residential properties are affected by higher Additional Buyers’ Stamp Duty rates and tighter loan-to-value limits. In China, while domestic consumption and growth in the non-manufacturing sector is likely to stay robust, the property cooling measures implemented by the Chinese government in Tier 1 and Tier 2 cities are expected to restrict growth in home prices.

Year to date, shares in CapitaLand are down nearly 10% to $3.26 on Tuesday.