“Our three profit buckets all delivered strong growth,” Lim says. These three buckets are operating Patmi which refers to profit from business operations excluding any gains or losses from divestments; revaluations and impairments; and portfolio gains or losses arising mainly from divestments; and revaluation gains or losses from revaluation of investment properties.
SINGAPORE (Feb 28): CapitaLand and City Developments (CDL) reported their FY2019 and 4QFY2019 earnings ended December on Feb 26 and both focused on return on equity (ROE). CapitaLand’s ROE rose to 10% in FY2019, from 9.3% in FY2018. In 2013, CapitaLand first set an ROE target of 8%.
“We delivered ROE above our cost of equity and 70% of it is cash based,” notes Andrew Lim, CFO of CapitaLand, during its results briefing. Lim refers to the sectors that contributed to CapitaLand’s total Patmi of $2.14 billion in FY2019, up 21.2% y-o-y, as “buckets”.
