CapitaLand expects H1 profits to take a hit

Operating PATMI is projected to crash 25-35% YoY.

CapitaLand anticipates its total profit after tax and minority interests (PATMI) to be materially and adversely impacted in the first half of 2020, according to a profit guidance filed in SGX.

In particular, operating PATMI is expected to fall 25-35% from the $361.3m recorded in H1 2019, whilst cash PATMI (comprising operating PATMI and portfolio gains) is expected to crash 40-50% from $496m over the same period.

The group’s Q1 operating performance was affected by the social distancing, travel and commercial restrictions implemented by the countries it operated in, it revealed in May. It also waived and potentially deferred rent for small and medium enterprise (SME) tenants in accordance with the COVID-19 (Temporary Measures) Bill in Singapore on 8 June.

CapitaLand has adopted annual valuation starting December with effect from 2020. This means that any revaluation gains or losses on investment properties will only be recorded in its full-year results.

The group expects to release its H1 2020 financial results in early August.