CapitaLand reports 28 % rise in Q3 net profits

The Singapore property giant says revenue rose up 27.7 percent to S$1.4 billion.

CapitaLand fourth quarter profits plunge 40%
A man passes a Capitaland logo at a mall in Singapore February 10, 2016.

Net profits for CapitaLand in the third quarter ended September 30 rose 28.4 percent to S$247.5 million, compared to S$192.7 million a year ago.

The Singapore property giant said revenue rose up 27.7 percent to S$1.4 billion, helped by higher incomes from residential projects in Singapore and China and increased rental income from commercial portfolio in Singapore and serviced residence business.

"We will continue to grow our assets under management through capital recycling, portfolio optimisation, fund management and management contracts," Lim Ming Yan, President and Group CEO of CapitaLand said, according to the Business Times.

He said the group's optimal asset mix that provided "stability and a strong recurring income stream despite a volatile market".

There was a 54.5 percent growth in operating profits that hit S$251.8 million. This was a result of strong contributions from residential businesses in Singapore and China. The commercial assets in Singapore as well as shopping malls in China and Malaysia also contributed to the revenue growth.

Last month CapitaLand said it was setting up a a $2 billion (US$1.5 billion) private investment vehicle in China that will invest in prime integrated developments China's major cities. The investment vehicle, its third in China known as Raffles City China Investment Partners III, will be the largest private capital-raising by CapitaLand so far.