With COVID-19 pandemic adversely affecting its financial performance, CapitaLand Limited’s profit after tax and minority interest (PATMI) plunged 89%, to $96.6 million in the first half of 2020 from $875.4 million over the same period last year.
Operating PATMI also declined 27.7% year-on-year to $261.2 million.
In an SGX filing, the company revealed that its revenue dipped 4.9% year-on-year to $2.03 billion in 1H 2020.
CapitaLand attributed the decline to the $158.6 million rental rebates granted to tenants in China, Malaysia and Singapore, as well as lower contributions from residential projects and shopping malls in China and Singapore and the group’s lodging business.
The drop was partially mitigated by new contributions from its Ascendas-Singbridge portfolio and higher handover of residential units in Vietnam.
The residential projects that contributed to 1H 2020 revenue were mainly One Pearl Bank in Singapore, The Metropolis, Kunshan, Parc Botanica, Chengdu and Spring, Chongqing in China, as well as Feliz en Vista in Vietnam.
Collectively, the two core markets of China and Singapore accounted for 65.1% of CapitaLand’s revenue, up from 64.8% in 1H 2019.
For 1H 2020, earnings before interest and tax (EBIT) fell 71% year-on-year to $596.8 million, with China and Singapore markets remaining as key contributors, accounting for 74.1%.
Lee Chee Koon, Group CEO of CapitaLand Group, noted that despite the impact of COVID-19, CapitaLand’s balance sheet remains in a strong position, while its long-term growth strategy is intact.
“We are on an active lookout for counter cyclical opportunities that will strategically uplift CapitaLand’s growth trajectory. Asset recycling remains a key driver for CapitaLand’s return on equity and we will look to opportunistically divest non-core assets and businesses,” he said.
Looking ahead, CapitaLand revealed plans to launch the remaining 806 units at One Pearl Bank and Sengkang Grand Residences given that the show galleries had already resumed operations under Phase 2 Safe Re-opening of Singapore’s economy.
“The group also expects to launch its new residential project at Liang Court site in 2021,” it added.
Eugenia Liew, Senior Digital Content Specialist at PropertyGuru, shared this story. To reach out or pitch news stories, contact email@example.com.