The Straits Times | MARCH 28, 2013
Real estate giant CapitaLand has painted a bright outlook for the group, saying it is confident about continuing growth despite possible economic challenges.
The upbeat prognosis was contained in its summary annual report, released on the Singapore Exchange website.
It included a letter to shareholders from chief executive officer Lim Ming Yan and chairman Ng Kee Choe, who said the group delivered better-than-expected residential sales in Singapore and China last year despite property cooling measures in both countries.
"CapitaLand is confident of the long-term prospects of the real estate markets in Singapore and China, two markets that are underpinned by strong economic fundamentals, growing population, rising disposable income and improving consumption patterns," they wrote.
CapitaLand announced last month that net profit for the 12-month period to Dec 31 fell 12 per cent to $930.3 million, owing to lower revaluation gains and higher impairments.
Revenue was up 9 per cent to $3.3 billion year on year.
At the end of last year, its businesses in Singapore accounted for $11.3 billion, or 33 per cent, of the firm's total assets, while China accounted for $13.4 billion, or about 39 per cent.
"Despite possible economic headwinds, we are confident that the group, led by strong management and armed with a robust balance sheet, will be able to continue growing its businesses into the future," the letter said.
In Singapore, for example, the outlook for the commercial property sector is cautious over the short term, but this is mitigated by limited new supply within the Central Business District between this year and 2015.
CapitaLand also said in the report that former CEO Liew Mun Leong was given a package worth $5.33 million last year, which included his salary, bonus and an award of shares. This is lower than the $5.63 million package he received in 2011.
Mr Liew announced that he was stepping down as CEO of CapitaLand last year and Mr Lim took over at the start of this year.
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