CapitaLand's earnings spiral down 12% to $930.3m

No thanks to lower revaluation.

According to a release, CapitaLand achieved revenue of S$3.30 billion for FY2012, up 9.3% from a year ago, due largely to higher contributions from the Group’s development projects, shopping malls and fee-based businesses.

Net profit was S$930.3 million, down 12% due to lower revaluation and portfolio gains, and higher impairments. Excluding these items, operating PATMI increased by
4.9% to S$369.3 million.

Revenue recognised from the Group’s Singapore development projects grew 10.4% to S$854.3 million, mainly from The Interlace, Urban Resort Condominium and Sky Habitat.

In China, the projects that contributed to revenue this year were The Metropolis and The Pinnacle in Shanghai, as well as Riverside Ville and Beau Residences in Foshan.

Last year, Singapore residential sales remained stable. A total of 681 units were sold, translating into a total sales value of S$1.30 billion, almost similar to that achieved in 2011.

In China, the strong sales momentum since 2Q2012 resulted in more than a doubling in units sold and sales value year-on-year to 3,161 units and about RMB7.00 billion (S$1.40 billion) respectively compared to FY2011 of 1,466 units sold with value totaling RMB2.90 billion (S$600 million).

The Group’s Earnings before Interest and Tax (EBIT) amounted to S$2.02 billion in FY2012. Singapore and China operations remained the key contributors to EBIT,
accounting for 76.9% of total EBIT.

Operating EBIT was higher by 13.4% compared to FY2011 (S$1.27 billion in FY2012 versus S$1.12 billion in FY2011), driven by improved contributions from development projects in Singapore, China and Australia, as well as the Group’s shopping mall business