CapitaLand registers 1H 2021 PATMI of S$922.2 million
13 Aug 2021
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Singapore, 13 August 2021 – CapitaLand Limited registered a PATMI of S$922.2 million for 1H 2021, an increase from the S$96.6 million in 1H 2020, driven mainly by the nascent economic recovery of the Group’s two core markets Singapore and China.
Operating PATMI1 for 1H 2021 rose 66.0% year-on-year to S$433.6 million, mainly attributed to transactional fee income from CapitaLand’s listed REITs and unlisted funds, lower rental rebates granted to tenants, and higher contribution from development projects.
Revenue for 1H 2021 increased by 34.7% year-on-year to S$2,730.0 million. Collectively, Singapore and China accounted for 77.0% of CapitaLand’s revenue. In terms of asset class, investment properties comprising office, retail, business park, logistics and industrial, as well as lodging properties, which are recurring in nature, accounted for 69.0% of total revenue.
EBIT grew 262.9% to S$2,165.7 million compared to 1H 2020. Singapore and China remain the key contributors to EBIT, accounting for 84.1% of total EBIT for 1H 2021.
For 1H 2021, CapitaLand's investment properties comprising office, retail, business park, logistics and industrial, as well as lodging properties, which are recurring in nature, accounted for 69% of total revenue. Capital Tower and 79 Robinson Road are two of the Group's commercial properties located in Singapore's CBD.
Financial highlights
|
1H 2021 (S$ m) |
1H 2020 (S$ m) |
Variance (%) |
Revenue |
2,730.0 | 2,027.4 | 34.7 |
Earnings before interest and tax (EBIT) |
2,165.7 | 596.8 | 262.9 |
| Total PATMI | 922.2 | 96.6 | 854.5 |
| Comprising: | |||
Operating PATMI[1] |
433.6 | 261.2 | 66.0 |
| Portfolio gains[2] | 489.0 | 9.3 | NM |
| Revaluation gains and impairments | (0.4) | (173.9) | (99.8) |
NM= Not meaningful
Mr Lee Chee Koon, Group CEO of CapitaLand Group, said: “While we are encouraged by the progress achieved in 1H 2021, we are mindful that our businesses continue to face disruptions and uncertainties heightened by COVID-19; and the wider economy has yet to resume normalcy. This will be the last set of results we are reporting for CapitaLand, as we head towards the completion of CapitaLand’s proposed restructuring. I am looking forward to the continued support of our shareholders under the soon-to-be listed CapitaLand Investment. We remain committed to managing our capital prudently and effectively, albeit under a new pandemic-hit landscape, to deliver on our promise to grow our business sustainably and do right by our stakeholders.”
We remain committed to managing our capital prudently and effectively, albeit under a new pandemic-hit landscape, to deliver on our promise to grow our business sustainably and do right by our stakeholders.
CapitaLand Group CEO, Mr Lee Chee Koon
CapitaLand's senior management team engaged analysts and media during the virtual results briefing for CapitaLand's 1H 2021 financial results. This will be the last set of results the Group is reporting for CapitaLand as it heads towards the completion of CapitaLand's proposed restructuring.
CapitaLand Group CEO Mr Lee Chee Koon addressed analysts and media at CapitaLand's 1H 2021 results virtual briefing. He shared that the Group is "encouraged by the progress achieved in 1H 2021", while remaining "mindful that our businesses continue to face disruptions and uncertainties heightened by COVID-19."
CapitaLand is committed to building a resilient ecosystem that will emerge stronger from the pandemic. CapitaLand and its philanthropic arm CapitaLand Hope Foundation have pledged about S$9 million globally since the onset of COVID-19 to support the immediate needs of communities in which it operates, with a focus on healthcare, food security and social assistance. Initiatives this year include donating oxygen concentrators and other emergency medical supplies to places in need. Staff volunteers also took part in various community projects such as vaccination drives, delivering meals to the elderly and distributing masks under Temasek Foundation’s Stay Prepared #StayMasked initiative.
Through its philanthropic arm CapitaLand Hope Foundation, CapitaLand delivered medical supplies to government hospitals in Telangana, India, to help strengthen the country's preparedness for health emergencies.
The Group continues to prioritise the safety and well-being of its employees, customers and partners. The Group’s frontline staff undergo regular self-testing to reduce the risk of community transmission. For tenants, CapitaLand granted rental relief, and helped them to pivot their business. An example is enabling retailers to reach out to a wider audience through the IMM virtual mall on Shopee. On a gross 100% basis, the Group provided rental rebates and marketing support of over S$50 million to affected tenants in 1H 2021. Through a partnership with International SOS, guests at The Ascott Limited, CapitaLand's lodging unit, now have access to a comprehensive suite of telehealth, telecounselling and travel security advisory services.
During the COVID-19 pandemic, CapitaLand granted rental relief to tenants, and helped them to pivot their business, such as through initiatives like the launch of the IMM virtual mall on Shopee.
CapitaLand's lodging arm, Ascott, is the first hospitality company globally to offer guests global access to a comprehensive suite of telehealth, telecounselling and travel security advisory services. Ascott will provide these complimentary services as part of its enhanced ‘Ascott Cares’ commitment to improve the overall wellness and safety of its guests.
Under CapitaLand’s 2030 Sustainability Master Plan, the Group concluded its inaugural Sustainability X Challenge to crowd-source the world for the best sustainability innovations. To further support the test bedding of sustainability and other high-tech innovations in the built environment, it has set up a S$50 million CapitaLand Innovation Fund. CapitaLand has retained its listing on the 2021 Global 100 Most Sustainable Corporations in the World index by Corporate Knights Inc. It also remains a constituent of the 2021 FTSE4Good Index Series, along with CapitaLand Integrated Commercial Trust. CapitaLand and all five of its Singapore-listed REITs are also ranked among the top 10 in their respective categories in the Singapore Governance and Transparency Index 2021.
Notes:
1 Operating PATMI refers to profit from business operations excluding any gains or losses from divestments, revaluations and impairments.
2 Portfolio gains comprise gains or losses arising from divestments, gains from bargain purchase or re-measurement on acquisitions and realised revaluation gains/losses arising from revaluation of investment properties to agreed selling prices of properties.
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