UPDATE 2-CapitaLand falls on profit slide, outlook cautious

(Updates with share price, analyst comment)

By Daryl Loo

SINGAPORE, April 30 (Reuters) - CapitaLand, Southeast Asia's top property developer, reported a 59 percent slide in quarterly profit due to weaker sales in Singapore and lower one-off gains, and said home buyers would remain wary amid the global credit crisis.

Earnings from private home sales in the city-state, CapitaLand's biggest money spinner a year ago amid a property boom, slumped as the government moved to cool the hype, but were was partly offset by foreign markets like China and Australia.

"This is disappointing as the first quarter had also been boosted by the sale of CapitaLand's stake in Hitachi Tower," said ABN AMRO analyst Fera Wirawin. The developer sold its 50 percent share in the Singapore office building for a S$110 million ($81 million) gain in the period.

"CapitaLand is holding up better compared to its peers as its income is more diversified, but we think the property down-cycle has already started in Singapore earlier than expected," said Wirawin, who has downgraded CapitaLand to "sell".

Its shares fell in early trade against a flat broader market .FTSTI, and were down 1.2 percent at S$6.89 by 0121 GMT.

Private home prices in Singapore, CapitaLand's biggest market, recorded a second straight quarter of slower growth in early 2008 as property sales slumped to the lowest in five years, government figures showed on Friday.

CapitaLand derived 39 percent of its pretax income from outside Singapore last year and also earns profits from property trusts it has spun-off in recent years, such as CapitaMall Trust (CMLT.SI: Quote, Profile, Research, Stock Buzz) and CapitaCommercial Trust CACT.SI