(Updates with company comment starting fourth paragraph)
Feb. 14 (Bloomberg) -- CapitaLand Ltd., Southeast Asia’s biggest developer, said fourth-quarter profit dropped 20 percent as gains from asset sales declined from a year earlier.
Net income fell to S$476.6 million ($379.2 million) in the quarter ended Dec. 31, from a revised S$596 million a year earlier, it said today in a statement to the Singapore stock exchange. That beat the S$175.47 million average of seven analysts’ estimates compiled by Bloomberg. Revenue rose 17 percent to S$1.06 billion from a revised S$903 million, compared to the S$1.23 billion estimated by analysts.
CapitaLand posted higher revenue from projects in Singapore, China, Australia and Vietnam, and increased rental earnings from its shopping mall business, it said. Portfolio gains totaled S$83.7 million in the quarter, down 62 percent from S$219.7 million a year earlier when it sold Raffles City Changning and 28 serviced residence properties, it said today.
“We will maintain our focus on growing the business in our core markets,” Liew Mun Leong, president and chief executive officer of the CapitaLand Group, said in the statement. “Singapore and China, two of our core markets, are in Asia and we want to be part of its growth story.”
CapitaLand expects its residential business in Singapore to remain healthy, benefitting from the continued revenue growth from The Interlace, Urban Resort Condominium and The Wharf Residence. In 2012, the developer will start expansion work at The Interlace and d’Leedon and the condominium project in Bishan Central, it said.
CapitaLand remains positive about the property market in China over the long-term as urbanization, strong domestic consumption and increasing affluence boost demand, Liew said. The developer plans to open seven new malls in China and two in Singapore this year, while its serviced apartment brand, the Ascott, is set to reach its target of 40,000 apartment units by 2015, CapitaLand said.
“According to growth forecasts, other than India, Asia’s growth will be fuelled by China’s growing and rapidly urbanizing economy,” Liew said.
The company’s shares were unchanged at S$2.90 at 11:41 a.m. local time. The stock has gained 31 percent this year, compared with the 12 percent advance in Singapore’s benchmark Straits Times Index.
--Editors: Tomoko Yamazaki, Malcolm Scott
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