CapitaMalls Asia’s Q4 profit rose 17%

SINGAPORE--The shopping mall unit of property developer CapitaLand posted a 17.1 per cent jump in fourth quarter earnings on the back of better performance by its Singapore properties.

CapitaMalls Asia’s net profit for the three months ended December increased to S$216.4 million from S$184.8 million in the corresponding quarter the year before.

Revenue, however, slipped 8.7 per cent to S$103.7 million, mainly due to lower contributions from China as fewer malls opened last year compared to 2012. But the fall was mitigated by income from the opening of Bedok and Westgate malls in December, the mall developer said.

“Our key markets of Singapore, China and Malaysia continued their good performances last year, recording increases in net property income and tenants’ sales and strong shopper traffic,” said CapitaMalls Asia’s Chief Executive Lim Beng Chee.

Revenue and net profit from the Singapore segment grew 3.4 per cent and 63 per cent, respectively, helped mainly by the opening of Bedok Mall and Westgate, as well as better performance by the company’s affiliated real estate investment trust CapitaMall Trust.

In its other markets, Queensbay Mall lifted contribution from Malaysia while lower rental commission and project management fees in China saw both revenue and profit from this segment decline.

However, prospects for these markets remain bright as the economies of Singapore, Malaysia and China are expected to grow further this year, said Chairman of CapitaMalls Asia Ng Kee Choe.

“Growth in our key markets in Asia is expected to be underpinned by resilient domestic demand, and this bodes well for the performances of our shopping malls,” said Mr Ng.

Mr Lim added that the company is aiming to open four new malls in this year, two in the Chinese cities of Guangzhou and Chengdu, and another two in India’s Hyderabad and Mangalore. Last year, CapitaMalls Asia also opened four malls.

“We will continue to be on the lookout for strategic acquisitions to grow our portfolio further, to expand our base for recurring earnings in the future,” said Mr Lim.

Another major project that the developer has embarked on is Project Jewel, a joint venture with Changi Airport Group to build a mixed-use development that houses retail and leisure offerings. LEE YEN NEE