CapitaLand 4th-Quarter Profit Falls on Australand Stake Sale

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CapitaLand Ltd., Southeast Asia’s biggest developer, said fourth-quarter profit fell 46 percent after it recorded a loss on the sale of a stake in Australand Property Group and lower revenue from its Singapore home sales.

Net income declined to S$142.9 million ($113.3 million) in the three months ended Dec. 31, from S$262.7 million a year earlier, the Singapore-based developer said in a stock exchange statement today. Revenue slid 2.3 percent to S$1.09 billion. Full-year profit 31 dropped 8.7 percent to S$849.8 million while operating profit rose 43 percent to S$527.7 million, it said.

“Operating profit was below our expectations,” said Vikrant Pandey, an analyst at UOB Kay Hian Pte in Singapore. He estimated operating profit at S$596 million for the year.

CapitaLand said it booked currency losses after raising A$426.4 million ($385 million) by selling a third of its 59 percent stake in Australand in November. The number of homes sold in Singapore in the fourth quarter was a third of those in the year earlier period and the developer expects demand and prices to “further moderate” with the government’s loan curbs.

The company sold 109 residential units in the island state in the quarter, compared with 352 in the same period a year ago. For the full year, it sold 1,260 homes, almost twice the 681 a year earlier.

The shares fell 1 percent to S$2.91, the most since Jan. 30, at the close of trading in Singapore while the benchmark Straits Times Index gained 0.6 percent.

Singapore Home Demand

Singapore’s fourth-quarter home prices slid for the first time in almost two years, trimming annual gains to the smallest since 2008 as mortgage curbs cooled prices in the Southeast Asian city. Housing values gained 1.1 percent in 2013, the lowest annual increase since prices slid 4.7 percent in 2008.

Demand in Singapore homes are also expected to further moderate in 2014 because of concerns of interest rate increases, the company said in the statement.

The developer sold 611 home units in China in the quarter, the developer said today. Its two core markets of Singapore and China accounted for 88 percent of the group’s profit before interest and tax in 2013, it said.

CapitaLand bought a residential site in China’s Ningbo city for S$232 million and plans to build about 1,100 small and medium-sized units, the developer said on Jan. 23. The developer along with CapitaMalls Asia Ltd. and CapitaMall Trust sold Westgate Tower, a Singapore office building, for S$579 million, it said last month.

The company also wrote down the value of some investments in China, India, Australia and Abu Dhabi.