CapitaLand registers 1H 2020 PATMI of S$96.6 million
Singapore, 7 August 2020 – CapitaLand Limited’s 1H 2020 financial performance was adversely impacted by the COVID-19 pandemic. 1H 2020 PATMI was S$96.6 million, 89.0% lower than the S$875.4 million for 1H 2019. Operating PATMI of S$261.2 million was 27.7% lower year-on-year.
Revenue fell slightly by 4.9% year-on-year to S$2,027.4 million. This was mainly due to rental rebates of approximately S$158.6 million granted to tenants in Singapore, China and Malaysia, and lower contributions from shopping malls and residential projects in Singapore and China and the Group’s lodging business. The decline was partially mitigated by higher handover of residential units in Vietnam and new contributions from the AscendasSingbridge portfolio.
For 1H 2020, EBIT was S$596.8 million, a decrease of 71.0% from 1H 2019. Singapore and China markets remain the key contributors to EBIT, accounting for 74.1% of total EBIT for 1H 2020.
Financial highlights
|
1H 2020 |
1H 2019 (S$ m) |
Variance |
Revenue |
2,027.4 |
2,131.1 | (4.9) |
Earnings before interest and tax (EBIT) |
596.8 |
2,061.0 | (71.0) |
Operating PATMI |
261.2 |
361.3 | (27.7) |
Total PATMI |
96.6 |
875.4 | (89.0) |
Mr Lee Chee Koon, Group CEO of CapitaLand Group, said: “Despite the impact of COVID-19, CapitaLand still generated net cash of about S$300 million from operating activities in 1H 2020. This resilience is underpinned by our global footprint and diversified portfolio. CapitaLand’s balance sheet remains in a strong position and our long-term growth strategy is intact. We are on an active lookout for counter cyclical opportunities that will strategically uplift CapitaLand’s growth trajectory. Asset recycling remains a key driver for CapitaLand’s return on equity and we will look to opportunistically divest non-core assets and businesses.”
“Throughout the COVID-19 crisis, we have remained focused on making CapitaLand into a leading global real estate and asset management company. We have been proactively adjusting our business to meet the evolving needs of stakeholders and ensure that CapitaLand stays relevant in the long run. We are also accelerating our digitalisation process, including bringing more retailers onboard CapitaStar and allowing them to tap the digital platform’s membership base of 1 million and 11 million in Singapore and China respectively.”
CapitaLand premiered its first livestream shoppertainment show in Singapore with well-loved media personalities such as Michelle Chong, Mongchin Yeoh and Benjamin Kheng on 31 July to 2 August 2020.
The three-day six-hour livestream garnered more than 34,000 views. It brought the social experience of shopping in the mall to the comfort of the home, showcasing CapitaLand malls’ brands and products in an entertaining and authentic manner.
We have been proactively adjusting our business to meet the evolving needs of stakeholders and ensure that CapitaLand stays relevant in the long run. We are also accelerating our digitalisation process, including bringing more retailers onboard CapitaStar.
CapitaLand is committed to building a resilient ecosystem that will emerge stronger from COVID-19. Throughout the pandemic, the Group has prioritised the safety and well-being of its employees, customers and partners. In addition, CapitaLand reached out to healthcare workers, community care staff and vulnerable communities to extend its assistance.
Across the world, CapitaLand staff participated actively in community projects such as delivering meals for the needy and facilitating temporary accommodation for migrant workers. The Group also housed returning nationals requiring quarantine, as well as stranded workers due to border closures. For tenants, CapitaLand provided rental relief during this difficult period, and focused on helping them adapt to the post-COVID-19 new normal.
Throughout the pandemic, CapitaLand is committed to supporting the governments and healthcare communities in the various markets where it operates.
This video shows an initiative involving the Singapore government and other partners in caring for migrant workers.