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CapitaLand's Q4 profit surges 73.8% to S$430.5m
PROPERTY developer CapitaLand ended 2016 on a strong note with a 73.8 per cent surge in net profit for the fourth quarter ended Dec 31 to S$430.5 million.
This was fuelled by better operating performance, higher fair value gains on revaluation of investment properties and lower impairments.
Operating profit after tax and minority interest (Patmi) grew 16 per cent to S$289.1 million supported by higher contributions from the group's trading properties and shopping malls in China.
Its revenue in the quarter grew 6.5 per cent to S$1.85 billion mainly due to higher handover of development projects in China and rental income from the serviced residence business.
Development projects that contributed to higher revenue in China in the quarter included One iPark in Shenzhen, Riverfront in Hangzhou, The Metropolis in Kunshan and Vista Garden in Guangzhou.
For the full year, CapitaLand reported an 11.7 per cent growth in net profit to S$1.19 billion, attributing it to improved operating performance. Its operating Patmi grew 5.1 per cent to S$865.3 million.
Group CEO and president Lim Ming Yan noted that this is the highest yearly operating Patmi achieved since CapitaLand was listed in 2000, contributing 73 per cent of total Patmi - nearly double the 40 per cent just five years ago.
"Our ongoing focus to strengthen our operating Patmi and balance sheet has further increased the group's financial strength," he said.
Last year, a record 12,789 homes were sold by CapitaLand. In Singapore, the group sold 571 residential units, up from 244 in 2015, with a sales value of S$1.42 billion (FY 2015 was S$559 million).
A second straight year of record for residential sales was achieved in China, with 10,738 units sold for 18.1 billion yuan (S$3.74 billion) - up from 9,402 units sold for 15.4 billion yuan in 2015.
The group is proposing a dividend of 10 Singapore cents a share for fiscal 2016, up from nine Singapore cents in 2015.