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Oct. 21 (Bloomberg) -- CapitaLand Ltd., Southeast Asia’s biggest developer, said third-quarter profit dropped 83 percent after lower contributions from China and Australia, and an accounting rule change restated last year’s revenue.
Net income dropped to S$80.2 million ($62.8 million) in the quarter ended Sept. 30, from a restated S$460.1 million a year earlier, it said today in a stock exchange statement. Revenue fell 58 percent to S$608.6 million from S$1.45 billion. Sales would have declined 3 percent without the accounting change effective Jan. 1, based on figures provided by the company.
The Singapore-based developer is planning to sell more apartments in both its home market and China, tapping on opportunities as measures by both governments to curb housing prices hurt weaker competitors. CapitaLand invested S$7 billion in new projects this year, more than its target of S$5 billion to S$6 billion of investments, focusing on the two nations.
“We will continue to adopt a prudent investment approach,” Chief Executive Officer Liew Mun Leong said in a press release today. “With our strong balance sheet and financial flexibility, it is likely the uncertainty and cooling measures will provide opportunities for us to explore and secure investment opportunities, especially in Singapore and China.”
Singapore will continue releasing land to meet private housing demand, which makes up 23 percent of the city state’s housing market, the Business Times reported this week, citing National Development Minister Khaw Boon Wan. China intensified housing measures with curbs on mortgages and limited home purchases for major cities such as Shanghai and Beijing. The two are CapitaLand’s biggest markets, each making up 35 percent of assets, according to a slide presentation today.
Its shares closed 1.7 percent higher at S$2.45 at the close of Singapore trading. The stock has lost 34 percent this year, compared with the 15 percent decline in the Singapore benchmark Straits times Index.
--Editors: Linus Chua, Ryan Woo
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