CapitaLand registers 1Q 2018 PATMI of S$319.1 million
Singapore, 30 April 2018 – CapitaLand Limited achieved a PATMI of S$319.1 million in 1Q 2018, 18.8% lower than the corresponding quarter mainly due to absence of the gain of S$160.9 million from the sale of The Nassim in 1Q 2017. This was mitigated by higher portfolio and revaluation gains mainly from the divestment of 20 malls in China and a property investment in Vietnam, as well as a writeback of provision for Victoria Park Villas and Bedok Residences in Singapore.
Excluding the gain from the sale of The Nassim in 1Q 2017, operating PATMI for 1Q 2018 increased by 25.0% or S$45.8 million to S$228.7 million. This was on the back of higher development profits in Singapore, as well as higher rental income from our newly acquired or opened malls and offices in China, Japan and Germany.
Group revenue for 1Q 2018 increased by 53.3% or S$478.0 million to S$1,375.5 million on account of higher contributions from development projects in Singapore and China, rental revenue from newly acquired and opened properties, as well as the consolidation of revenue from CapitaLand Mall Trust (CMT), CapitaLand Retail China Trust (CRCT) and RCS Trust (RCST). The development projects which contributed to the revenue this quarter were Victoria Park Villas in Singapore and The Metropolis in China.
In 1Q 2018, the Group achieved an EBIT of S$719.8 million, an increase of 15.1% as compared to 1Q 2017 EBIT of S$625.4 million. The increase was mainly due to higher operating contributions from development projects, commercial, retail and serviced residence businesses, higher portfolio and revaluation gains, as well as a net writeback of provision for foreseeable losses. Singapore and China markets remain the key contributors to EBIT, accounting for 82.6% of total EBIT compared to 84.0% in 1Q 2017.
Financial highlights
|
1Q 2018[1] |
1Q 2017 (S$ m) |
Variance (%) |
Variance (%) |
Revenue |
1,375.5 |
897.5 |
53.3 |
53.3 |
Earnings before interest and tax (EBIT) |
719.8 |
625.4 |
15.1 |
55.0 |
Total PATMI |
319.1 |
392.8 |
(18.8) |
37.6 |
Operating PATMI[3] |
228.7 |
343.8 |
(33.5) |
25.0 |
[1] The Group consolidated CMT, CRCT and RCST into its Group’s results with effect from August 2017. The consolidation of these three trusts increased the Group’s revenue and EBIT by approximately S$265 million and S$134 million respectively in 1Q 2018, but no change to profit attributable to owners.
[2] 1Q 2017 results have been restated to take into account the retrospective adjustments relating to SFRS(I) 15 Revenue from contracts with customers.
[3] Operating PATMI refers to profit from business operations excluding any gains or losses from divestments, revaluations and impairments. Operating PATMI for 1Q 2017 included a gain of S$160.9 million from the sale of 45 units of The Nassim.
Mr Lim Ming Yan, President & Group CEO of CapitaLand Group, said: “CapitaLand is on track to achieve our annual S$3-billion capital recycling target while we explore investment opportunities across asset classes. In 1Q 2018, we continued to optimise our portfolio by divesting 20 retail assets in China. This was followed by the proposed acquisition of Pearl Bank Apartments in Singapore and a site for our first integrated development in Vietnam. We also successfully set up our second commercial fund in the country, the US$130-million CapitaLand Vietnam Commercial Value-Added Fund, as part of growing our fee-based business.”
In 1Q 2018, CL China handed over 1,328 units to home buyers. The units handed over during the quarter were mainly from the completion of a phase from The Metropolis. As at 31 March 2018, the Group had over 8,000 units valued at RMB 15.1 billion which had been sold but not yet handed over. About 70% of this value is expected to be recognised over the next nine months. In 1Q 2018, CL Vietnam handed over 259 residential units to home buyers. The units handed over were mainly from joint venture projects, namely Vista Verde and Seasons Avenue. Of the 2,600 yet-to-be-completed units that have been sold, representing a value of S$686 million, about 50% of the value is expected to be handed over and recognised in 2018.