CapitaLand, Southeast Asia’s biggest developer, said third-quarter profit rose 85% as it sold more homes and booked gains from divestment of assets in China.
Net income climbed to $148.5 million in the three months ended Sept. 30, from $80.2 million a year earlier, it said in a statement to the Singapore stock exchange today. That’s lower than the $191 million mean estimate of three analysts compiled by Bloomberg. Sales climbed 13% to $686.9 million, the Singapore-based developer said.
Sales revenue from Singapore development projects rose 7% to $220.1 million, mainly from The Interlace and Urban Resort Condominium, the company said. Revenue from China accounted for $67.9 million, a 67% increase over the previous year, it said.
The developer posted portfolio gains of $79.8 million from the divestments of its service residences Ascott Guangzhou and Ascott Raffles Place to Ascott Residence Trust and the sale of its entire 20.75% stake in United Malayan Land.
“Although global economic conditions have been volatile and uncertain, we continue to explore and seize opportunities,” Liew Mun Leong, president and chief executive officer of the group, said in the statement. “Having invested substantially over the past few years, we expect these investments to bear fruits in the coming years.”
CapitaLand earlier this month named Ming Yan Lim as president and chief executive officer of the group after Liew said he will retire next year from the company he helped create almost 12 years ago.
EXPANDING MARKETS
Under Liew, CapitaLand expanded beyond the limited Singapore market with a population of 5.3 million. China made up 41% of the company’s $33.4 billion of assets as at 30 June 2012, exceeding Singapore’s 31%, according to data from the company. Australia contributed 16%.
CapitaLand’s Singapore home sales climbed to 329 units valued at $633 million in the nine months to Sept. 30, it said. Residential sales in China gained 67% to about 2,000 units in the nine month period.
The developer has about 2,500 homes under development and expects to sell as many as 1,000 units a year over the next two to three years, it said in its annual report. The developer’s three core markets of Singapore, China and Australia accounted for 88.2% of the group’s revenue in the nine months ended Sept. 30.
CapitaLand increased its investments last year, committing a total of $11 billion for new investments, an 83% increase from the $6 billion worth of investments made in 2010.
The company’s shares fell 1.8% to $3.27 at the close in Singapore yesterday. The stock has gained 49% this year, compared with the 14% advance in Singapore’s benchmark Straits Times Index.
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