SINGAPORE (May 8): Capital World, the property developer formerly known as Terratech Group, reported earnings of RM19.2 million ($6.5 million) for the 3Q ended March, down half from its earnings of RM38.4 million a year ago due to lower revenue and higher expenses.
Revenue for the quarter fell 42% to RM43.5 million from RM74.6 million in 3Q17 due to a lower incremental percentage of completion (POC) for Capital 21, the retail podium component of the group’s mixed development in Johor, Malaysia).
In line with the lower revenue, selling and distribution expenses fell to RM1.8 million from RM3 million a year ago.
General and administrative expenses however more than tripled to RM5.8 million from RM1.5 million, which the group attributes to higher payroll-related costs additional depreciation and amortization expenses, and fees for liaising and sourcing tenants for the Capital City mall.
Going forward, the group says it will continue with its efforts to look for potential joint venture partners with land assets in strategic locations in Malaysia and other Asean countries in order to further strengthen its property business.
Shares in Capital World closed 3.1% lower at 6.3 cents.
