CapitaLand's profit up 17% to S$399m

This second quarter figure brings the Group’s profit for the first six months to half a billion Singapore dollars.

Revenue in 2Q2011 was S$740.4 million, up 25% compared to 2Q2010. For 1H2011, revenue grew 31% to S$1,352.0 million, mainly from development projects such as The Interlace, The Wharf Residence and Urban Resort Condominium in Singapore, as well as Riviera, Beau Residences and Riverside Ville in China.

Fee-based income also increased with higher fund management and property management fees. Rental revenue from shopping malls and serviced residences was lower due to the absence of contribution from the shopping malls and serviced residences that were divested to CapitaLand-sponsored real estate investment trusts in 2010.

In 2Q2011, CapitaLand recorded Earnings before Interest and Tax of S$719.6 million, comparable to the S$723.0 million achieved in 2Q2010. In 1H2011, EBIT rose 9% year-on-year to S$1,003.1 million, with overseas operations accounting for 61% or S$608.5 million.

Dr Richard Hu, Chairman of CapitaLand Group, said, “While global economic growth remains patchy and despite concerns about Europe’s debt crisis and the US budget deficit, Asia continues to present growth prospects. We expect to expand our businesses and continue to actively pursue investment opportunities in our core and secondary markets. With about S$5 billion of new investments primarily in Singapore, China, Australia and Vietnam in the first half of this year, we have strengthened our foundation for growth in the coming years.”

CapitaLand’s net profit of S$399 million in 2Q2011 is 17% higher than the 2Q2010 net profit of S$339.7 million. This brings net profit for the first half of 2011 to S$500.5 million, up 35% year-on-year.