Singapore’s Capita Land for sale in Singapore Group posted profit after tax and minority interests (PATMI) of S$1.018 billion for FY2006, a 35.6% jump from the S$750.5 million recorded in FY2005. This is the third consecutive year of record profit.

The FY2006 performance is especially significant as it was achieved in the absence of strategic divestment gains which boosted the FY2005 results. In 2005, the record profits included S$424.8 million of divestment gains from the sale of Raffles Holdings’ hotel business and the property services arm, PREMAS International.

Earnings before interest and tax (EBIT) for FY2006 were S$1,822.0 million, an increase of 111.8% from S$860.3 million in FY2005. The increase in EBIT was mainly due to better operating margins from the Singapore residential operations, stronger fee-based and interest income, higher portfolio gains and a write-back of revaluation deficits.

The EBIT for all SBUs increased, as did the EBIT for both Singapore and overseas segments. Overseas EBIT was S$889.6 million, 31% higher than last year´s figure of S$680.9 million. Revenue contribution from overseas remained strong at S$2,241 million, accounting for 71.2% of the Group’s total revenue.

Dr Richard Hu, Chairman, CapitaLand Group, said, “Achieving record profits for the third consecutive year is an affirmation of the corporate strategy that the Group has laid out and assiduously executed over the last several years. We are the first Singapore property company listed on the Singapore Exchange to have exceeded the S$1 billion profit mark. We have created S$17.3 billion of shareholder value since the formation of CapitaLand in November 2000.

“Looking ahead, the Singapore property market is experiencing an exceptionally strong upturn in the private residential, office, retail, entertainment and serviced residence segments. On top of this, positive macro drivers continue to be seen in the region. The Group will continue to expand its geographic footprint and step up its presence in new markets, while maintaining a significant Singapore footprint to enjoy the full benefits of the strong property market recovery.”