CapitaLand’s net profit jumped 38.2% to $1.16b in FY14

Thanks to higher revaluation gains and lower portfolio losses.

CapitaLand today reported that its net profit jumped 38.2% to $1.16b in FY14, while its full-year operating profit grew 40.4% to $705.3m.

Growth in CapitaLand’s operating profit after tax and minority interest was driven by improved operating performance from its shopping mall business and development projects in Vietnam, as well as the $123.5m profit from the sale of Westgate Tower coupled with lower funding costs.

The group’s full-year revenue increased 11.8% to $3.92b. CapitaLand’s two core markets of Singapore and China accounted for 76.7% of its revenue, down slightly from 77.4% in FY13.

CapitaLand’s earnings before interest and taxes (EBIT) grew 7.9% to $2.44b in FY14, with Singapore and China operations accounting for 83.5% of total EBIT.

The higher Singapore EBIT was mainly attributable to the profit from the sale of Westgate Tower, higher fair value gains of investment properties, absence of divestment loss and lower losses from the re-purchase of convertible bonds, partially offset by higher provision for impairment and foreseeable losses.

EBIT from China decreased due to lower portfolio and fair value gains, partially mitigated by higher share of development profits from projects held through associates and lower provision for foreseeable losses.