CapitaLand Q4 net falls 20%, bullish on S'pore residential

CapitaLand, Southeast Asia’s largest property developer, posted on Tuesday a 20 % fall in fourth quarter net profit due to lower earnings from developments and smaller portfolio gains, reported Reuters.

CapitaLand, about 40 % owned by Singapore state investors Temasek, earned $476.6 million for the three months ended December, down from a restated $596 million a year ago.

Excluding revaluations and impairments, CapitaLand’s net profit for October-December dropped 41 % to $221.9 million, it said.

CapitaLand restated its 2010 earnings to make them comparable with the current set of results, which are based on a new accounting standard that took effect Jan 1.

The new accounting rule means CapitaLand’s earnings from overseas development projects can only be recognised upon full completion, resulting in earnings that are more volatile and lumpy.

“We expect our residential business in Singapore to remain healthy,” CEO Liew Mun Leong said in a statement.

He also said the firm was positive about China’s property market in the long term as urbanisation, strong domestic consumption and increasing affluence underpin demand.