Portfolio strategy boosts CapitaLand profit

Real-estate giant CapitaLand has achieved its highest total profit after tax and minority interests (PATMI) since 2008.

Its PATMI for last year of S$1.5 billion (US$11.37 billion) was 30.3 per cent higher than the previous year.

CapitaLand Group president/group CEO Lim Ming Yan says the growth is largely attributable to the success of the group’s active portfolio reconstitution strategy. “We unlocked $2.6 billion through divestments and announced $5.7 billion of new investments last year.”

CapitaLand expanded its network of shopping malls in key city clusters through two acquisitions in China and Japan, six openings in China and Malaysia, and five management contracts secured in China and Singapore.

A record 1.2 million sqm of retail gross floor area expanded across the four countries during the year, increasing the group’s recurring income base.

For the fourth quarter, the group had PATMI of $267.7 million and operating PATMI of $159.4 million. The lower PATMI and operating PATMI compared to the corresponding quarter were mainly because of lower handover of units for development projects in China.

Revenue for last year decreased 12.2 per cent to $4.6 billion mainly because of lower completion and handover of units from development projects in China, partially mitigated by rental contribution from newly acquired and opened properties, as well as the consolidation of revenue from CapitaLand Mall Trust, CapitaLand Retail China Trust and RCS Trust.

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