CapitaLand sinks to $1.67b second-half loss on revaluation of properties, impairments

SINGAPORE (THE BUSINESS TIMES) - CapitaLand has sunk into the red with a net loss of $1.67 billion for the second half ended Dec 31, 2020, from a net profit of $1.26 billion a year ago.

This was mainly due to the revaluation of investment properties, and a $2.49 billion impairment of projects and equity investments which are non-cash in nature, the property giant said on Wednesday (Feb 24) in a bourse filing.

Loss per share (LPS) stood at 32.4 cents for the second half of 2020, from earnings per share of 25 cents a year ago.

Revenue for the six months ended Dec 31, 2020, rose by 9.8 per cent to $4.51 billion from $4.1 billion a year ago, mainly due to higher handover of units from residential projects in China and Vietnam.

The increase was partially offset by lower rental revenue from CapitaLand's investment property portfolio amid the pandemic. The group also extended tenant support relief measures by way of rental rebates to impacted tenants mainly in Singapore, China and Malaysia.

The group saw a 66.1 per cent drop in other operating income to $369.8 million, from $1.09 billion a year ago.

Other operating expenses widened to $2.19 billion, from $72.4 million a year ago. This comprised $1.53 billion in fair value losses of investment properties held through subsidiaries, a $593.6 million impairment of investments in Hong Kong, Australia, the US, the UK and Indonesia, as well as the recognition of the Singapore government's rental relief passed down to tenants amounting to $32.9 million.

CapitaLand said the fair value and impairment losses are non-cash in nature and principally stemmed from the extraordinary events relating to the Covid-19 pandemic that materially adversely affected the group's business during the year.

For the full year ended Dec 31, 2020, CapitaLand sank into the red with a $1.57 billion net loss, from a net profit of $2.14 billion. Revenue was up 4.8 per cent to $6.53 billion, while LPS stood at 31 cents.

CapitaLand's board has proposed a final dividend of nine Singapore cents per share for the full year, down from 12 cents in FY2019, subject to shareholders' approval. The date payable and books closure date will be announced at a later date.

CapitaLand shares closed at $3.12 on Tuesday, up $0.02 or 0.7 per cent.

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