Home Capital Sector Focus

CapitaLand beats ROE target, primes balance sheet for ASB acquisition

Chan Chao Peh
Chan Chao Peh2/25/2019 07:30 AM GMT+08  • 5 min read
CapitaLand beats ROE target, primes balance sheet for ASB acquisition
SINGAPORE (Feb 25): Driven by stronger recurring income and contribution from more mature property assets, CapitaLand has reported its highest full-year earnings in a decade for FY2018. In a sign that the company’s scale and financial muscle is coming t
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Feb 25): Driven by stronger recurring income and contribution from more mature property assets, CapitaLand has reported its highest full-year earnings in a decade for FY2018. In a sign that the company’s scale and financial muscle is coming to bear, CapitaLand achieved yet another year of improvement in return on equity.

In FY2016, CapitaLand’s ROE was just 6.6%; it improved significantly to 8.6% the following year. The investment community then challenged CapitaLand’s management to sustain the trend — and it did, with a 9.3% ROE for FY2018, which is described as “high water mark” by group chief financial officer Andrew Lim. "We are quite confident we should be able continue to deliver returns that is higher than cost of equity and we aspire to reach sustainable double-digit ROE," says group CEO Lee Chee Koon at the results briefing on Feb 20.

For 4Q ended Dec 31, 2018, CapitaLand’s profit after tax and minority interests (Patmi) improved 71% y-o-y to $475.7 million, underpinned by better operating performance. The company enjoyed higher gains from asset recycling and revaluations of investment properties as well. Revenue in the same period increased 34% y-o-y to $1.62 billion.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now