CapitaLand posts 71.2% higher 4Q earnings of $476 mil; proposes 12-cent dividend for FY18
SINGAPORE (Feb 20): CapitaLand Limited reported 4Q18 earnings of $475.7 million, up 71.2% on-year from its restated earnings of $277.8 million due to better operating performance, as well as higher gains from asset recycling and revaluation of investment properties.
Revenue for 4Q grew 21.3% to $5.6 billion compared to $4.6 billion a year ago.
The growth in revenue was attributed to a higher handover of units from residential projects in China and Vietnam compared to the previous year, and rental revenue from newly acquired and operational properties in China, Germany and the US.
Residential projects which contributed to revenue this quarter were Vermont Hills in Beijing, New Horizon in Shanghai and Century Park East in Chengdu, Sky Habitat and The Interlace in Singapore.
Collectively, the two core markets of Singapore and China accounted for 75.9% of the group’s revenue, versus 74.5% in 4Q17.
EBIT grew to $4.1 billion from $3.3 billion in 4Q17, offset in part by lower contributions from CapitaLand’s residential projects in Singapore, and absence of the gain from the sale of The Nassim.
The latest set of quarterly results brings CapitaLand’s total earnings for FY18 to a total of $1.8 billion, 12.3% higher y-o-y from restated FY17 earnings of $1.6 billion and the highest net profit recorded since 2008.
Full-year return on equity (RoE) grew to 9.3% from 8.6% the year before.
A final ordinary dividend of 12 cents per share has been proposed for FY18.
Going forward, the group expects to maintain its disciplined pace of asset recycling as well as build on the portfolio’s diversity and asset strengths by re-investing in higher yielding, complementary opportunities to grow its recurring income streams.
Lee Chee Koon, president and group CEO of CapitaLand, says he believes the group’s intended acquisition of Ascendas-Singbridge will strengthen CapitaLand’s presence and pipeline in the core markets of Singapore and China.
“While CapitaLand continues to leverage and strengthen our existing business and asset portfolio, we will seek out new growth drivers to bring us into the next phase of growth… [The Ascendas-Singbridge acquisition] will give us immediate scale in new economy sectors such as logistics and business parks, and in growth markets such as India, the US and Europe,” says Lee.
Shares in the group closed 5 cents higher at $3.39 on Tuesday.
