CapitaLand’s Q1 earnings leap 10.6% to $152.8m

Thanks to better operating performance, CapitaGreen contributions.

Boosted by robust Chinese home sales, CapitaLand Limited (CAPL)’s operating profit after tax and minority interests (PATMI) climbed 10.6% YoY to $152.8m in 1Q16.

According to a report by OCBC, the growth is thanks to better operating performance for CAPL’s shopping mall and serviced residence businesses. Additionally, CapitaGreen also posted new contributions.

Total PATMI for the quarter stood at $218.3m, reflecting a 35.4% YoY spike from 1Q15’s $161.3m. This is largely attributable to the fair value gain realised from the divestment of a China property, Somerset ZhongGuanCun Beijing.

Meanwhile, revenue dipped 2.3% YoY to $894.2m on back of an absent fair value gain of $59.6m stemming from the change in use of Ascott Heng Shan Shanghai in 1Q15, as well as reduced contributions from CAPL’s development projects in Singapore and Vietnam.

On the flip side, this pullback was partially offset by increased residential sales revenue in China and higher rental revenues from CapitaGreen and the serviced residence business.

Further, CAPL’s earnings before interest and tax (EBIT) jumped 20.1% YoY to $458.2m in Q1, thanks to a fair value gain from the divestment of Somerset ZhongGuanCun Beijing. This was also boosted by decreased divestment losses and improved contributions from CapitaGreen, shopping malls and development projects in China.