: (epa023) Singapore's Capitaland posts 33-per-cent drop in quarterly profit

Oct 27, 2009, 7:32 GMT

   Singapore - Singapore's Capitaland, the biggest property developer in South-East Asia, on Tuesday posted a 33-per-cent drop in net profit for the third quarter compared to a year ago, when the company benefited from divestment gains.

   In the three months to September 2009, net profit slipped to 281.3 million Singapore dollars (201 million US dollars) from 419.4 million Singapore dollars for the same period a year earlier, Capitaland said in a statement.

   'The group has performed significantly better this quarter than the previous two quarters,' president and chief executive officer Liew Mun Leong said.

   For the second quarter, Capitaland had reported a net loss of 156.9 million US dollars due to writedowns on its investments, thus posting its first quarterly loss in nearly six years.

   Revenue in the third quarter rose to 1.04 billion Singapore dollars, up 75 per cent from 597.2 million Singapore dollars from a year ago, as property markets in Singapore, China and Vietnam rebounded, said the company.

   'Our core markets of China, Singapore and Australia have exhibited improving economic, credit and real estate market conditions,' Capitaland said in an outlook report.

   'Global financial stability has improved but risks remain,' it added. 'While business conditions appear to be improving, the group remains vigilant.'

   Capitaland had earlier announced that it would list its shopping mall business with 86 malls in 48 Asian cities on the Singapore stock exchange to tap growth potential.

   At an extraordinary general meeting on Friday this week, the management would be seeking the shareholder's approval for the plan, said the company.

   The largest shareholder of Capitaland is Singapore's state investor Temasek with a stake of 40 per cent.