CapitaLand’s improving operational performance continued into Q1 2021

Residential units sold in Singapore increased by almost four-fold compared to a year ago.

CapitaLand shared that the improving operational performance of its asset classes continued from the second half of 2020 into the first quarter of 2021.

However, the pace of recovery is varied across geographies, it said in a business update on Wednesday (12 May).

CapitaLand noted that its international portfolio has remained resilient, while its full suite of business in China has recovered as commercial activities there largely rebounded to pre-pandemic levels.

Operational performance in Singapore is expected to remain stable even as the tightened COVID-19 measures rolled out by the government may affect shopper traffic. The property giant also expects residential development within the city-state to be tempered by rising construction costs.

Photo: CapitaLand

Photo: CapitaLand

In Q1 2021, the number of residential units sold in Singapore increased by almost four-fold from 21 to 81 units compared to a year ago (786 sold out of 830 units launched). In fact, Sengkang Grand Residences and One Pearl Bank have already sold 96.8% and 92.9% of the units launched, respectively.

In Vietnam, the group plans to focus is on securing new residential projects since the country’s residential market is expected “to recover further” this year.

CapitaLand revealed that the overall portfolio occupancy level of its properties in India – where a severe second wave of COVID-19 has resulted in tighter mobility restrictions – has remained stable at more than 90%. Office rent collections have also been healthy at 98% in Q1 2021, which is similar to pre-pandemic level.

Meanwhile, total asset under management stood at $137.7 billion as of 31 March 2021, while total fee income increased 9% to $203.6 million in Q1 2021 from $186.7 million over the same period last year. Property management and serviced residential management accounted for 24% and 16% of the income fee respectively. 

On the proposed restructuring of the group, the property giant said separating its development business from its investment management business will sharpen its focus, accelerate growth as well as unlock shareholder value.

Notably, the group’s “investment management platforms and lodging business are proposed to be consolidated into “CapitaLand Investment Management” (CLIM), which is to be listed by introduction on the Singapore Exchange (SGX)” while its real estate development business “is proposed to be placed under private ownership, to be fully held by CLA Real Estate Holdings (CLA)”.


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