CapitaMalls 2Q profit up by a whopping 40.7%

Profit after tax and minority interests (PATMI)  rose to S$232 from the S$164.9 million for 2Q 2011.

CMA announced today that earnings before interest and tax (EBIT) were S$283.8 million (HK$1,721.8 million) for 2Q 2012, 33.4% higher than the S$212.8 million (HK$1,291.0 million) for 2Q 2011.

Mr Liew Mun Leong, Chairman of CapitaMalls Asia, said, “We are pleased to register a strong set of results for the second quarter of this year, continuing on from our healthy 36.1% growth in PATMI in the first quarter. In view of our strong performance in the first half of this year, we are pleased to declare an interim dividend2 of 1.625 Singapore cents (9.9 HK cents) per share.

This is 8.3% higher than last year’s interim dividend of 1.5 Singapore cents (9.1 HK cents).

Based on the current outlook and growth momentum, the Board expects this year’s total dividend payout to be at least equal to last year’s 3.0 Singapore cents (18.2 HK cents).”

Mr Lim Beng Chee, CEO of CapitaMalls Asia, said, “The outlook for our key markets of Singapore, China and Malaysia remains positive, with retail sales expected to continue to grow.

In Singapore, we expect retail sales this year to be boosted by GDP growth of between 1.0% and 3.0%, and higher tourist arrivals of between 13.5 million and 14.5 million. In China, retail sales are expected to grow between 16.0% and 17.0%, driven by economic expansion of 8.0% forecast for the whole year. In Malaysia, retail sales are expected to increase 6.0% this year on the back of projected economic growth of 4.0% to 5.0%.”

“Our malls in Singapore, China and Malaysia continued their strong performances in the first quarter of this year to the second quarter. Our China malls registered Net Property Income growth of 18.3%, and tenants’ sales increased 11.6% compared to the first half of last year – driven by tenants’ sales in second- and third-tier cities, which grew even faster at 15.9%.”

“We opened two malls in the second quarter – JCube in Singapore and CapitaMall Taiyanggong in Beijing – and target to open another seven this year. These comprise The Star Vista in Singapore, which will open in September, and another six malls in China. To further grow our shopping mall business, we will continue to pursue selective acquisitions in our key markets of Singapore, China and Malaysia, as well as any other good opportunities that give us income and potential for growth.”