2 Min Read
SINGAPORE, Oct 31 (Reuters) - Singapore's CapitaLand Ltd , Southeast Asia's biggest developer, posted an 8.7 percent fall in third quarter net profit on Thursday due to lower portfolio gains.
The firm, 39 percent held by Singapore state investor Temasek Holdings, earned S$135.5 million ($109.6 million) in the three months ended Sept. 30, down from S$148.5 million a year ago.
CapitaLand's net profit for the nine months ended September was S$706.9 million, just short of the average full-year estimate of S$720 million by analysts polled by Thomson Reuters.
The Singapore firm's operating profit after tax and minority interests rose 13 percent to S$101.8 million during the third quarter, driven by higher contributions from development projects in Singapore and China, as well as rental income from shopping malls.
CapitaLand sold 468 residential units in Singapore and 707 residential units in China during the third quarter of 2013.
Earnings by Singapore property developers are hard to predict as they include revaluation gains or losses. Singapore rules also prevent developers from recognising revenue or profit from overseas projects until they are ready for occupation, even if the projects have been successfully presold.
CapitaLand's share price has fallen around 15 percent so far this year, making it one of the worst performing stocks among Singapore blue chips. ($1 = 1.2368 Singapore dollars) (Reporting by Kevin Lim; Editing by Richard Pullin)