CapitaLand 1Q2010 profit up 169% to S$115.4mln

Higher revenue attributed to growth in residential sales in Singapore, China and Vietnam.

CapitaLand has achieved a net profit of S$115.4 million in 1Q2010, 169% higher than the same period last year.

Revenue in 1Q2010 grew 41% to S$687.3 million largely from residential development projects in Singapore, China and Vietnam, as well as increased contribution from serviced residences operations. In Singapore, the 69% rise in revenue to S$261.3 million was mainly due to continued recognition for the Latitude and The Seafront on Meyer projects. Revenue from overseas operations rose 28% to S$426.0 million, representing 62% of the Group’s 1Q2010 revenue.

The contribution from Vietnam has increased due to revenue recognition for The Vista in Ho Chi Minh City.

Group Earnings before Interest and Tax (EBIT) for 1Q2010 was S$309.5 million, 75% higher than that achieved in 1Q2009. This was driven by strong profits from residential development projects and higher contributions from joint venture projects, namely The Orchard Residences in Singapore and Summit Residences in Ningbo, China.

As at 31 March 2010, CapitaLand had a cash balance of S$5.7 billion and net debt-to-equity ratio of 0.27.

Richard Hu, Chairman of CapitaLand Group, said: “Asia has emerged from the crisis with renewed economic growth. The economies of Singapore and China – two of the Group’s core markets – are expected to grow 7-9% and 9-10% respectively in 2010. CapitaLand remains confident of Asia’s long-term growth potential and is well-positioned to ride on the recovery of real estate markets and improved business confidence in these markets. We will continue to deploy funds to our businesses in China and Vietnam, and the serviced residence and integrated shopping mall businesses, while being focused on demand fundamentals and disciplined in our investment management.”