CapitaLand – Annual Report 2009

The following key indicators were extracted from the annual report of CapitaLand for the year ended 31 December 2009.

 

 

2009

Change over 2008

Revenue

$2.96b

+ 7%

Profit to shareholders

$1.05b

– 16.6%

Earnings per share

26.2¢

-10.8¢

Return on equity (ROE)

8.7%

-3.5% points

Return on Assets (ROA)

5.5%

-2.4% points

Dividend per share

10.5¢

+3.5¢

Dividend yield

2.5%

+0.25% point

Debt to Equity (times)

0.09

-0.38

Net Assets per share

$3.03

-$0.54

Price of share as at 31 Dec

$4.20

+$1.09

 

CapitaLand’s total revenue for 2009 rose 7 per cent over 2008 to $2.96 billion despite a challenging year. Profit attributable to shareholders, however, declined 16.6 per cent to $1.05 billion due to net revaluation loss and higher impairment loss. This resulted in lower earnings per share of 26.2 ¢ and lower Return on Equity ratio of 8.7 per cent. Return on Assets was lower at 5.5 per cent.

 

During the year, CapitaLand strengthened its capital structure by:

1. rights issue that raised $1.8 billion

2. issue of convertible bond that raise $1.2 billion

3. sale of 34.5 per cent stake in subsidiary CapitaMalls Asia that raised $2.8 billion

 

These actions increased its cash and cash equivalent amount from $4.2 billion to $8.7 billion. At the same time, the debt to equity ratio improved significantly to 0.09 times from 0.47 times in 2008. CapitaLand now has a war chest of $8.7 billion to capitalise on investment opportunities. It did so on 18 January 2010 by investing $3.1 billion to own 100 per cent of Orient Overseas Development Limited (OODL). OODL owns a portfolio of seven sites in Shanghai, Kunshan and Tianjin comprising residential, office, retail and serviced residences/hotel properties.

 

For 2009, CapitaLand was proposing a first and final dividend of 5.5 cents and a special dividend of 5 cents per share on account of its operation and the successful initial public offering of CapitaMalls Asia. This is higher than 7 cents in 2008. The dividend yield was 2.5 per cent based on 31 December 2009 last traded share price.

 

The Net Asset per share as at 31 December 2009 was $3.03. The Price to Book ratio was 1.38 on that date (based on last traded price of $4.20). Currently, the price of CapitaLand is $4.10.

 

Copyright © 2010, the author known as LKT in Singapore.

 

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Advertisements
This entry was posted in Financial Management. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.