Group earnings before interest
and tax (EBIT) were S$1.822 billion,
an increase of 111.8% over 2005.
All SBUs of the Group achieved higher
EBIT across the board in full year 2006.
The higher EBIT was largely attributable
to the following: the write-back of
revaluation deficits previously charged
to the profit and loss account in respect
of our Singapore properties which saw
higher year-end valuations this year,
higher portfolio gains, recognition of
S$77.0 million negative goodwill and
higher fee-based and interest income,
as well as better operating margins
from the Singapore residential
operations.
CRL’s EBIT for full-year 2006 of
S$692.2 million was 40.6% higher
than last year. This was primarily
due to higher contributions from the
residential operations in Singapore
and China, and the recognition of
S$77.0 million negative goodwill
arising from the acquisition of a 20%
stake in Lai Fung Holdings Limited.
CCID’s EBIT for full-year 2006 was
S$372.4 million or S$347.7 million
higher than full-year 2005, mainly
attributable to the write-back of
revaluation deficits of investment
properties previously charged to the
profit and loss account. The higher
valuations of properties were a result
of higher rentals and occupancies
which were very much driven by our
pro-active enhancement as well as the
increasing office demand. Excluding
the write-back of revaluation deficits,
EBIT for full-year 2006 was
S$151.7 million compared to
S$137.9 million in 2005, mainly due to higher rentals from the
office properties, higher divestment
gains from the sale of Shanghai Xin
Mao Property Development Co., Ltd
and the sale of office space in
Springleaf Tower.
In line with its higher revenue,
CRTL’s EBIT for full-year 2006 was also
higher by 59.8% compared with 2005.
The increases were mainly attributable
to the gains from the divestment
of certain China retail malls to the
CapitaRetail China Trust and two
private equity funds, revaluation
surplus of Singapore properties
as well as higher contributions from
associated companies and overseas
investments. These increases were
partially offset by higher operating
costs due to business expansions,
in particular, China.
CFL’s EBIT for full-year 2006 of
S$61.6 million represented a 15.6%
increase over full-year 2005. This
increase was mainly attributable
to higher fund management and
acquisition fees, gains from the
disposal of investments, higher
dividend income, higher share of
results from associates and the
absence of one-off impairment
charge on an investment.
The Serviced Residences
SBU comprising Ascott and ART
achieved total EBIT for full-year 2006
of S$210.4 million. This was an increase
of 73.4% over that of 2005. The EBIT
growth was achieved through optimising
operational efficiency and sustaining
operational excellence on the back
of an improving global economic
environment. It was also boosted by
the gain from the sale of The Ascott
Mayfair in United Kingdom in August
2006. This increase was partially offset
by the transaction costs relating to
the establishment of ART as well
as impairments and provisions made
during the year in respect of the non-core
assets in Malaysia and one of
the acquisitions in Australia.
Raffles Holdings Group’s
(RHL) full-year 2006 EBIT also
improved significantly by 358.7%
to S$280.0 million, mainly attributable
to the higher share of an associate’s
profit arising from the sale of Raffles
City Singapore, which was completed
on 1 September 2006, as well as
higher interest income.
Following the sale of Raffles City
Singapore, RHL obtained its
shareholders’ approval on 17 November
2006 to delist RHL from the official list
of the Singapore Exchange Securities
Trading Limited. In conjunction with
the delisting proposal, CapitaLand also
proposed an exit offer (Exit Offer) by
way of a conditional cash offer of S$0.06
per share to acquire the issued shares
in the capital of RHL not already
held by it.
On 4 December 2006, CapitaLand
received acceptances totalling 97.19%
in respect of its Exit Offer and was
therefore entitled to exercise the right
to compulsorily acquire all the shares
of remaining RHL shareholders. The
compulsory acquisition was completed
on 20 January 2007, after which RHL
became a wholly-owned subsidiary of
the Group. RHL was delisted from the
official list of the Singapore Exchange
Securities Trading Limited on
13 December 2006. |
