CapitaLand under continued business pressure, but looking for growth openings

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.CapitaLand under continued business pressure, but looking for growth openings

Earnings per share fell sharply to 1.9 Singapore cents for the period under review, down from 21 cents a year ago.

Its S$3 billion annual capital recycling target remains unchanged, although progress slowed in H1 2020 because of the pandemic. In the second half of the year, CapitaLand plans to focus on divesting non-core assets, which could include retail assets in non-core markets.Meanwhile, amid the ongoing pandemic, the group is deferring unneccessary capital expenditure and has taken efforts to manage staff costs.

In H1 2020, the group racked up cost savings of S$154 million compared to the same period a year ago; it is targeting to save over S$200 million from reduced operating costs and capex for 2020 as a whole. In Singapore, it sold 35 residential units totalling S$60 million, although the circuit breaker forced developers to shutter sales galleries for most of the second quarter. To date, over 80 per cent of its existing launches in Singapore have been sold. The developer has some 1,800 units in the pipeline; 700 units are from the redevelopment of Liang Court, which is expected to be launched in 2021.

 

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