CapitaMalls Asia profit up 8.1% to HK$2.8mn

2012 will be inflection point for CapitaMalls Asia with more than 50.0% of its malls in China operational.

CapitaMalls Asia Limited (SGX: JS8 and HKEx: 6813) announced today that it posted profit after tax and minority interests (PATMI) of S$456.0 million (HK$2,769.2 million1) for FY 2011, 8.1% higher than the S$421.9 million (HK$2,562.1 million) for FY 2010. Earnings before interest and tax (EBIT) were S$601.9 million (HK$3,654.9 million) for FY 2011, 27.4% higher than the S$472.4 million2 (HK$2,868.9 million) for FY 2010.

Mr Liew Mun Leong, Chairman of CapitaMalls Asia, said: “Despite the challenging global economy, CapitaMalls Asia performed well in 2011. Looking ahead to this year, Asian countries will continue to lead global economic growth. Singapore is forecast to record growth of between 1.0% and 3.0%, while China is projected to grow 8.2% – nearly seven times the expected average growth of the advanced economies. Malaysia is expected to expand between 5.0% and 6.0%.”

“Our net tangible assets (NTA) per share increased from S$1.50 (HK$9.11) at the start of 2011 to S$1.60 (HK$9.72) at the end of the year, on the back of gains in the capital values of our portfolio of shopping malls. Including the total dividend paid of 3.5 Singapore cents (21.3 HK cents)3 a share in 2011, the total increase in NTA was 9.0% for the year.”

“For financial year 2011, the Board is pleased to propose a final dividend of 1.5 Singapore cents (9.1 HK cents) per share. Including the interim dividend of 1.5 Singapore cents we declared in July 2011, the proposed total dividend for full year 2011 is 3.0 Singapore cents (18.2 HK cents) per share.”

Mr Lim Beng Chee, CEO of CapitaMalls Asia, in a company report, said: “Our key markets of Singapore, China and Malaysia continued to perform well, registering increases in net property income and tenants’ sales last year. The performance of our China malls was the strongest, with net property income growth of 20.7% last year. Tenants’ sales in our China malls also increased by 13.2% last year, compared to 2010. Given the solid fundamentals in China – low unemployment rate, strong household balance sheets, rising urbanisation, retail sales and incomes – we see strong potential for the shopping mall sector in China.”

“In 2011, CapitaMalls Asia committed a total of S$3.4 billion (HK$20.6 billion) in acquiring stakes in five malls in Singapore and China – well ahead of our target of S$2.0 billion (HK$12.1 billion). These acquisitions bring our portfolio in China to 56 malls across 35 cities, of which 42 are operational. We opened four malls last year – three in China and one in India.”

“This year, we will continue to focus on our three key markets – Singapore, China and Malaysia. 2012 will be an inflection point for CapitaMalls Asia, with more than 50.0% of our malls in China operational. We target to open nine malls this year – seven in China and two in Singapore. With our strong balance sheet and low gearing, we remain ready and flexible to capitalise on acquisition opportunities.”