SINGAPORE (July 6): CapitaLand Limited is expecting to record a 25% y-o-y reduction in its operating profit after tax and minority interests (PATMI) for 1H20 to 35% from the $361.3 million recorded in 1H19.
In its profit guidance released Monday for 1H20, the group also said that cash PATMI – which comprises operating PATMI and portfolio gains – is expected to fall by 40% y-o-y to 50% from the $496.0 million 1H2019.
As the group adopted annual valuation in December with effect from this year, CapitaLand says it expects its total PATMI to be materially and adversely impacted for FY20.
On June 29, CapitaLand announced, through its responses to shareholders’ questions during its Annual General Meeting (AGM), that the group’s operating performance in its four core geographical markets in Singapore, China, India, and Vietnam, as well as the other countries it operates in, have been “affected to varying degrees” due to the Covid-19-induced restrictions.
While the group has seen business improvements pertaining to its retail malls and residential segments, CapitaLand says it expects leasing opportunities to remain “muted” due to a cautious approach adopted by companies moving forward.
CapitaLand has also provided tenant support measures totalling up to some $300 million, which are expected to have an “adverse impact” on its financial performance for FY20.
On June 8, CapitaLand announced that it will waive and potentially defer rent for qualifying small and medium enterprise (SME) tenants according to the Covid-19 (Temporary Measures) (Amendment) Bill.
On May 4, the group reported “relative resilience” in its office and business arm during its business update for 1Q20. It did not report any overall financial figures.
CapitaLand expects to release its 1H20 results in early August.
As at 12.06pm, shares in CapitaLand are changing hands 2 cents higher, or 0.7% up, at $3.06.
