PROPERTY giant CapitaLand is optimistic about selling remaining units at its private projects in Singapore, it said yesterday.
Mr Lim Ming Yan, president and group chief executive, told a results briefing that despite headwinds in the market, developments that are well designed, well built and well located can still sell if "priced correctly". He noted that CapitaLand's projects have still managed to move units despite several rounds of cooling measures.
CapitaLand Singapore chief Wen Khai Meng said the developer is "still sitting on a cushion" in terms of selling prices and has the flexibility to adjust prices, depending on market conditions.
CapitaLand made a gross profit margin of 14 per cent on its Singapore residential projects in the first six months of this year. The margin was 17 per cent for the whole of last year.
The firm reported higher earnings for the second quarter thanks to lower finance costs, higher development profits from China and more contributions from its shopping malls business.
Net profit grew 14.5 per cent to $438.7 million for the three months to June 30 from the previous year despite revenue falling 13.2 per cent to $875.3 million.
CapitaLand added in a statement that its shopping mall arm, CapitaMalls Asia, will focus on opening new centres in China and India in coming months while continuing to improve the performance of existing malls.
Its serviced residence business, Ascott, will continue to grow fee-based income by securing more management contracts to scale up its global network.
Net profit for the first half rose 9.2 per cent from the preceding year to $621.5 million, though revenue fell 9.4 per cent to $1.5 billion.
CapitaLand has appointed Mr Ng Kok Siong, chief financial officer of CapitaMalls Asia, to the post of CapitaLand's chief corporate development officer, to take effect on Sept 1. Mr Ng will relinquish his CapitaMalls job.
Earnings per share was 10.3 cents in the second quarter, up from nine cents the previous year.
Net asset value per share fell from $3.79 as at Dec 31 last year to $3.69 as at June 30 this year.
CapitaLand shares closed four cents up at $3.44 yesterday.
Q2 snapshot
Revenue: $875.3 million (-13.2 per cent)
Net profit: $438.7 million (+14.5 per cent) Dividends: -
This article was first published on August 6, 2014.
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