Capitaland

Capitaland turned in 2Q13 results which were broadly in-line with estimates. Net profit at $383.1m (-1% y/y, +104% q/q) with the lower y/y bottom-line attributed to weaker portfolio gains, baring which core net profit at $322.1m (+9% y/y) brings 1H13 core net profit to $599m (+15% y/y) Top-line revenue of $1.2b (+37% y/y, +79% q/q) was buoyed by higher revenue from the group’s development projects in Singapore, China and Australia as well as higher rental revenue from its shopping mall and serviced residence businesses, with the core markets of S’pore and China accounting for 64% of total revenue. For the quarter, CL S’pore revenue rose 33% as the group sold 139 residential units (2Q12: 202 units) bringing total sales in 1H13 to 683 units with total sales valued at $1.6b. Revenue contributions stemmed from The Interlace, Urban Resort Condominium and Sky Habitat as well as the commencement of revenue recognition for Bedok Residences. Revenue from China rose 44.0% as CL China sold 736 units (2Q12: 812 units) bringing total sales in 1H13 to 1,691 units valued at Rmb3.2b. The units sold were mainly from The Loft in Chengdu, The Metropolis in Kunshan, Dolce Vita in Guangzhou and iPark in Shenzhen. Amongst other key subsidiaries, CMA’s underlying revenue rose 25% due to contributions from Olinas Mall (acquired in Jul12) and The Star Vista (opened in Sept12) and commencement of revenue recognition for Bedok Residences, while Ascott’s revenue climbed a modest 8% due to contributions from properties that were acquired in 2H12, partially offset by the absence of revenue from properties divested in 3Q12. Going forward, grp will continue to focus on its core markets of Singapore and China to develop homes, offices, shopping malls, serviced residences and mixed developments. Aims to further expand and entrench its leading position in integrated and mixed developments in line with our core competencies and macro trends in Asia.