SINGAPORE: Shopping mall developer and operator CapitaMalls Asia announced on Thursday a 10 per cent on-year decline in its fourth-quarter net profit.
The company attributed the drop mainly to lower fair value gains from investment properties in China and Singapore, as well as impairment losses in India and higher finance costs.
Net profit for the quarter fell to S$184.8 million from S$205.4 million a year ago.
Revenue for Q4 rose 71.4 per cent to S$113.6 million from S$66.3 million the year before.
The company cited its acquisition of Olinas Mall in Tokyo, additional stakes in three malls in Japan and higher management fees for its revenue increase.
In addition, CapitaMalls posted a record profit of S$546 million for 2012 -- a 19.7 per cent jump from the S$456 million booked the year before.
The developer said more than 50 per cent of its malls in China started operations in 2012.
Besides opening seven malls in China, the company also opened two new malls in Singapore -- The Star Vista and JCube. It also enhanced existing properties like Bugis+ and The Atrium@Orchard.
The CEO of CapitaMalls Asia, Lim Beng Chee, said the firm will focus on opening five new malls in 2013 -- two in China, two in Singapore, and one in India.
He expects the company's key markets in Singapore, China and Malaysia to continue to grow this year, with robust growth in China.
"If you look at China, I think the growth is going to be strong, particularly because our business is focused on what we call 'middle-class shopping'... So mostly everyone can come to our mall to enjoy a meal (or) go to the supermarket... I think this is going to be very positive," said Mr Lim
The company has a pan-Asian portfolio of 102 shopping malls across 52 cities in five countries -- Singapore, China, Malaysia, Japan and India.
CapitaMalls stocks closed down more than 4 per cent at S$2.08 a share on Thursday on the Singapore Exchange.
- CNA/jc
CapitaMalls Asia Q4 net profit dips 10% on-year
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CapitaMalls Asia Q4 net profit dips 10% on-year
