Net profit was boosted by a bulk sale of The Nassim, which contributed S$160.9 million in the quarter. (Photo: CapitaLand)
Property giant CapitaLand posted a net profit of S$386.8 million in Q1 2017, up 77.2 percent from a year ago.
The strong growth came on the back of improved operating performance, including a gain of S$160.9 million from the bulk sale of 45 units at The Nassim, and higher portfolio gains.
Meanwhile, group revenue rose 0.4 percent to S$897.5 million from the same period last year. This was attributed to more handovers of development projects in China and rental contribution from newly acquired properties.
Earnings before interest and tax also grew 35 percent to S$618.6 million in Q1 2017, compared with S$458.2 million in Q1 last year.
“CapitaLand has achieved another quarter of strong growth. The group’s optimal asset mix has enabled us to deliver a steady stream of recurring income from our investment properties and management contracts, whilst we continue to realise gains from our trading properties,” said Lim Ming Yan, President & Group CEO of CapitaLand.
This year, the group will complete and commence operations for six more shopping malls in China, India, Malaysia and Singapore. It also expects to open about 2,600 serviced residence units.
In addition, there are plans to redevelop the Golden Shoe Car Park in Raffles Place into a Grade A office building, but the group is awaiting the Singapore Land Authority’s assessment of the differential premium payable for the potential enhancement in land use.
“Singapore and China continue to be our core markets, while we scale up in markets such as Vietnam,” said Lim. “We made our first foray into the Vietnam commercial property market in January 2017 with the acquisition of a prime site in the Central Business District of Ho Chi Minh City to develop our first international Grade A office tower in Vietnam.”