CapitaLand reported earnings of $922.2 million for the 1HFY2021 ended June, 9.5 times higher than the $96.6 million recorded in the first half of the previous year, driven mainly by the economic recovery in the group’s core markets of Singapore and China.
Revenue for 1HFY2021 increased by 34.7% y-o-y to $2.73 billion. Collectively, Singapore and China accounted for 77% of CapitaLand’s revenue. In terms of asset class, investment properties comprising office, retail, business park, logistics and industrial, as well as lodging properties, which are recurring in nature, accounted for 69.0% of total revenue.
Operating PATMI for 1HFY2021 rose 66% y-o-y to $433.6 million, mainly attributed to transactional fee income from CapitaLand’s listed REITs and unlisted funds, lower rental rebates granted to tenants, and higher contribution from development projects.
See also: CapitaLand receives overwhelming support for restructuring plan from shareholders
To that end, EBIT grew 262.9% to S$2,165.7 million compared to 1H 2020. Singapore and China accounted for 84.1% of total EBIT for 1H2021.
CapitaLand’s cash and available undrawn facilities stood at $14.8 billion as of June 30m, while net debt to equity stood at 0.64 times.
“While we are encouraged by the progress achieved in 1H 2021, we are mindful that our businesses continue to face disruptions and uncertainties heightened by COVID-19; and the wider economy has yet to resume normalcy. This will be the last set of results we are reporting for CapitaLand, as we head towards the completion of CapitaLand’s proposed restructuring. I am looking forward to the continued support of our shareholders under the soon-to-be listed CapitaLand Investment,” says Lee Chee Koon, group CEO of CapitaLand Group.
“We remain committed to managing our capital prudently and effectively, albeit under a new pandemic-hit landscape, to deliver on our promise to grow our business sustainably and do right by our stakeholders,” he adds.
In a statement accompanying its results, CapitaLand highlighted that the group and its philanthropic arm CapitaLand Hope Foundation have pledged about $9 million globally since the onset of Covid-19 to support the immediate needs of communities in which it operates, with a focus on healthcare, food security and social assistance.
For tenants, CapitaLand granted rental relief, and helped them to pivot their business. On a gross 100% basis, the Group provided rental rebates and marketing support of over S$50 million to affected tenants in 1H 2021.
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Under CapitaLand’s 2030 Sustainability Master Plan, the Group concluded its inaugural Sustainability X Challenge to crowd-source the world for the best sustainability innovations. To further support the test bedding of sustainability and other high-tech innovations in the built environment, it has set up a $50 million CapitaLand Innovation Fund.
Shares in CapitaLand closed flat at $4.09 on August 12.
Photo: CapitaLand
