CapitaLand's net profit soars 59.5% to $459.1m

Thanks to the healthy sales from The Nassim.

CapitaLand achieved a net profit of $459.1m for the past quarter which ended in March, up 59.5% higher from $287.9m bottom line recorded last year.

According to the group, this was due to improved operating perfromance, including the sale of 45 units of The Nassim and higher portfolio gains.

CapitaLand achieved a revenue of $897.5m, up 0.4% due to more handovers from its development projects in China and rental contribution from newly acquired properties. These projects include One iPark in Shenzhen, Riverfront in Hangzhou, Vista Garden in Guangzhou and Summit Era in Ningbo.

"The Group’s optimal asset mix has enabled us to deliver a steady stream of recurring income from our investment properties and management contracts, whilst we continue to realise gains from our trading properties," CapitaLand CEO and President Lim Ming Yan said.

This year, the group will complete and commence operations of six more shopping malls in China, India, Malaysia and Singapore, as well as the retail components of three Raffles City developments and Capital Square in China. Five of these 10 shopping malls and retail components will open in 2Q 2017. It also expects to open about 2,600 serviced residence units in 2017.

CapitaLand has also obtained the Singapore Urban Redevelopment Authority’s provisional permission for the proposed redevelopment of Golden Shoe Car Park into a Grade A office building, and is awaiting the Singapore Land Authority’s assessment of the differential premium payable for the potential enhancement in land use.

"Singapore and China continue to be our core markets, while we scale up in markets such as Vietnam. We made our first foray into the Vietnam commercial property market in January 2017 with the acquisition of a prime site in the Central Business District of Ho Chi Minh City to develop our first international Grade A office tower in Vietnam. We will be on a look-out for opportunities to further diversify our business and potentially bring our Raffles City brand there," Lim added.