CapitaLand's Q4 net profit down 20%

SINGAPORE: CapitaLand, Southeast Asia's largest property developer by market capitalisation, posted a net profit of S$476.6 million for its fourth quarter, down 20 percent from a restated S$596 million in the previous year.


The developer said the decrease was mainly due to lower development profits and portfolio gains.

For the full year, CapitaLand booked a net profit of S$1.06 billion, down by about 26 per cent from the 2010 financial year.

Despite the uncertainties in the global economy, the developer said it's optimistic about the outlook ahead as faster GDP growth in Asia will continue to present business opportunities.

CapitaLand also remains positive about long term prospects of the private residential markets in Singapore and China, in spite of the cooling measures implemented in both countries last year.

Liew Mun Leong, CapitaLand's CEO said, "Moving forward, we expect our residential business in Singapore to remain healthy, benefitting from the continued revenue recognition of The Interlace, Urban Resort Condominium and The Wharf Residence. In 2012, we plan to progressively release new phases at The Interlace and d'Leedon as well as launch the condominium project in Bishan Central."

In Singapore, CapitaLand sold 844 units of private homes with a total sales value of S$1.35 billion in 2011, up slightly from the 800 units sold in the previous year.

However, the developer expects the sale of residential units to fall in the short-term after the government introduced the Additional Buyers' Stamp Duty in December 2011.

In China, CapitaLand said it plans to release its new launches and phases of existing projects according to the market conditions and subject to regulatory approval. It will also explore opportunities to acquire new sites.

CapitaLand's board has proposed to pay out a first and final dividend of 6 cents per share and a special dividend of 2 cents per share for the financial year 2011.

- CNA/cc