Singapore-based developer CapitaLand's fourth-quarter profit fell 46 per cent after it recorded a loss on the sale of a stake in Australand Property Group and lower revenue from home sales in the city state.
Net income declined to S$142.9 million (HK$878.8 million) in the three months to December 31, from S$262.7 million a year earlier, Southeast Asia's biggest developer said in a stock exchange statement yesterday. Revenue slid 2.3 per cent to S$1.09 billion.
Profit for the year to December 31 fell 8.7 per cent to S$849.8 million while operating profit rose 43 per cent to S$527.7 million.
"Operating profit was below our expectations," said Vikrant Pandey, an analyst at UOB Kay Hian in Singapore. He estimated operating profit at S$596 million for the period.
CapitaLand said the decrease in revenue was primarily be- cause of the deconsolidation of Australand and lower revenue from Singapore development projects.
The developer raised A$426.4 million (HK$2.99 billion) by selling a third of its 59 per cent stake in Australand in November. The loss on the sale was S$120.8 million, it said yesterday.
CapitaLand sold 109 homes in the island state in the quarter compared with 352 in the same period a year ago.
Singapore's fourth-quarter home prices slid for the first time in almost two years, trimming annual gains to the small- est since 2008 as mortgage curbs cooled prices. Housing values gained 1.1 per cent in 2013, the smallest annual increase since prices slid 4.7 per cent in 2008.
Demand and prices for Sing- apore homes is expected to further moderate this year because of the impact of the mortgage curbs and concerns over interest rate increases, CapitaLand said.
The developer said it sold 611 home units in China in the quarter. Its two core markets of Singapore and China accounted for 88 per cent of the group's profit before interest and tax in 2013, it said.
CapitaLand bought a residential site in Ningbo for S$232 million and plans to build about 1,100 small and medium-sized units, the developer said last month.
The developer along with CapitaMalls Asia and CapitaMall Trust sold Westgate Tower, a Singapore office building, for S$579 million, it said last month.