A project of CapitaLand. The group has posted a growth of 21 per cent in profit after tax and minority interests in 2019. — VNS Photo

CapitaLand Limited has achieved a total profit after tax and minority interests (PATMI) of over S$2.1 billion (US$1.5 billion) in fiscal year 2019, 21.2 per cent higher than that of last year.

Operating PATMI was S$1.1 billion ($793 million), a record high for the group, it said.

The group attributed the good results to Ascendas-Singbridge (ASB) businesses, assets acquired in fiscal year 2018, and assets that turned operational in fiscal year 2019.

For the last quarter of 2019, PATMI was S$926.6 million ($688 million), a year-on-year increase of 94.8 per cent. The increase was mainly due to better operating performance, higher gains from asset recycling and revaluation of investment properties.

Revenue for the last quarter of 2019 grew by 46.3 per cent to S$2.4 billion ($1.7 million), mainly due to the consolidation of ASB and Raffles City Chongqing as well as higher contributions from Singapore and China malls and lodging properties in the USA.

The residential developments contributing to revenue in the quarter were Raffles City Residences in Chongqing, Vermont Hills in Beijing and Parc Botanica in Chengdu, China, as well as Marine Blue in Singapore.

The group said the sudden outbreak of COVID-19 has affected their businesses and those of their partners and tenants, especially in China and Singapore.

“The extent of the impact will depend on how long the outbreak lasts. Nevertheless, we remain positive on the long-term fundamentals for Singapore and China. Our priority is to ensure the well-being of our staff, tenants and patrons.

At the same time, we will proactively manage our business, including giving targeted relief measures to tenants and contributing to efforts to help the community and medical staff dealing with COVID-19. CapitaLand will fight and ride though this difficult period together with our stakeholders,” said Lee Chee Koon, Group CEO of CapitaLand Group.

As a show of solidarity with its stakeholders, board members and senior management will take a reduction in their board fee and base salary, from 5 per cent to 15 per cent effective from April 1, 2020.

The group has also imposed a wage freeze for all staff at managerial level and above. These measures will be reviewed after six months or when the position arising from the COVID-19 outbreak has stabilised.

CapitaLand Limited (CapitaLand) is one of Asia’s largest diversified real estate groups. — VNS