CapitaLand profits down 7.8% to $333.93m in Q3

The absence of gains from divesting Westgate to CMT dragged down profits.

CapitaLand's profit after tax and minority interests (PATMI) fell 7.8% YoY to $333.93m in Q3 2019, the company announced. Revenue jumped 37.1% to $1.73b over the same period.

In 9M 2019, profit slipped 6% to $1.21b whilst revenue dipped 3% to $3.86b.

Also read: CapitaLand profits down 5.3% to $875.4m in H1

The fall in profits for the quarter was mainly attributed to the absence of a one-time gain of $99.2m from divesting Westgate to CapitaLand Mall Trust (CMT) in August 2018.

This was offset by a growth in PATMI by 18.8% to $277.6m, mainly from consolidating Ascendas Singbridge’s results, as well as receiving higher contributions from residential projects in China and one-off fee income from a Vietnam project.

The rise in revenue came mainly from higher contribution from residential projects in China, contributions from newly acquired ASB and multifamily portfolio in the USA. The two core markets of Singapore and China accounted for 67.3% of its revenue for the quarter.

Residential, commercial strata and urban development comprised 32.1% or $555.1m of the total revenue for the quarter. Investment properties, including commercial, retail, business park, logistics and industrial, as well as lodging properties, took up the remaining 67.9% or $1.17b of total.

The group has expressed plans to look into growing its fee from fund management, as well as its Lodging platform. Fee income from its REITs and funds rose 35% YoY $86.8m in Q3, and its lodging unit has secured more than 10,600 new units since the start of the year.