By Yifan Wang
CapitaLand Ltd. (C31.SG) released its earnings results for the third quarter on Tuesday. Here is what we watched for:
REVENUE: Third-quarter revenue rose 37% from a year earlier to 1.73 billion Singapore dollars (US$1.27 billion), beating a FactSet forecast of S$1.38 billion.
NET PROFIT: While FactSet didn't provide an estimate for net profit, the group reported a 7.8% decline due to a lack of divestment gains that boosted earnings a year earlier. Net profit for the quarter was S$333.9 million (US$245.7 million).
WHAT WE WATCHED:
--OPERATING EARNINGS: Despite lower net profit, the developer's operating profit, which excludes divestment, revaluation or impairment influences, was 19% higher in the quarter, as a newly acquired subsidiary made its first full-quarter contribution. Development projects in China and fee income in Vietnam also boosted operational earnings, which fell in the previous quarter amid muted performance of Singapore and Chinese residential projects.
--ASSET RECYCLING: CapitaLand has divested more than S$5.2 billion in assets and released S$2.4 billion of net capital back to the group so far this year, it said. "This will enhance our financial flexibility to seize potential opportunities ahead," its chief executive said.
Write to Yifan Wang at firstname.lastname@example.org