CapitaLand expects H1 total Patmi to sink 85-95% on share of CCT, CMT losses

CAPITALAND on Monday updated its profit guidance for the six months ended June 30, 2020 with expectations that its total Patmi (profit after tax and minority interests) will be reduced by 85-95 per cent from the S$875.4 million recorded a year ago.

This is after taking into account a S$159.9 million effective share of revaluation losses from two of its listed investments, CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT), the property group said in a bourse filing.

It added that the trusts' financial results incorporated a loss on revaluation of their respective investment properties totalling about S$553.9 million. 

The group has an interest of 28.49 per cent in CMT, and 29.42 per cent in CCT. CMT posted its Q2 results on July 23, and CCT on July 22.

CapitaLand added that there are no changes to the expected reduction in operating Patmi and cash Patmi disclosed in its earlier profit guidance on July 6.

The company said then that its operating Patmi - which refers to profit from business operations excluding any gains or losses from divestments, revaluations and impairments - is expected to decline by 25 per cent to 35 per cent for H1 2020, from the S$361.3 million it posted a year ago.

Meanwhile, cash Patmi - comprising operating Patmi and portfolio gains - is expected to tumble by 40 to 50 per cent, from S$496 million previously.

CapitaLand will release its results before the start of trading on Aug 7.

Shares of CapitaLand were trading at S$2.81 as at 10.41am on Monday, down S$0.01 or 0.4 per cent after the announcement.