CapitaLand Ltd.'s fourth-quarter net profit fell 20% from a year earlier, but the property developer is still optimistic about weathering an uncertain global economy and government intervention in China and Singapore's real-estate markets.
Declines in development income and gains on its portfolio weighed on the result. CapitaLand is Southeast Asia's biggest property developer by market capitalization.
Despite slower growth forecasts globally and softer property demand in Singapore and China following government efforts to rein in prices increase, CapitaLand remains "confident in the long-term prospects of these two markets," the group said in a statement Tuesday.
Residential sales in Singapore are likely to fall in the short term after government moves in December to curb demand for investment properties, the company said, but added that "a significant price correction appears unlikely due to the ample liquidity and favorable interest-rate environment."
Net profit for the quarter was 476.6 million Singapore dollars (US$379.6 million), down from a restated S$596 million a year earlier. Excluding revaluations and impairments, the company had a profit of S$221.9 million in the fourth quarter.
A survey of five analysts by Dow Jones Newswires yielded an average net-profit forecast of S$193 million. The analysts had expected lower revaluation gains and greater impairment losses.
CapitaLand restated its 2010 results after adopting financial-reporting standards last year that require overseas and selected Singapore projects to be recognized only upon full completion. It had originally reported a fourth-quarter 2010 net profit of S$522.1 million.
Revenue for the three months ended Dec. 31 was S$1.06 billion, up 17% from a restated S$903 billion a year earlier, the company said. It announced a total dividend of 8 Singapore cents per share for 2011.
For 2011, net profit was S$1.06 billion, down 26% from a restated S$1.43 billion.
