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CapitaMalls Asia Ends 2013 on a High Note with Higher Profits

CapitaMalls Asia (SGX: JS8), one of the largest retail mall developer, owner and managers in Asia, reported its full year results for 2013 yesterday.

The company currently has 85 malls in operation in Singapore, China, Malaysia, Japan and India with plans to increase its portfolio size to 105 malls in the next few years. It also has interests in publicly-listed real estate investment trusts like CapitaMall Trust (SGX: C38U), CapitaRetail China Trust (SGX: AU8U) and CapitaMall Malaysia Trust (which is listed in Malaysia).

How has 2013 been?

CapitaMalls Asia’s performance for 2013 have been very impressive, with operating profit after tax and minority interests (PATMI) increasing a stellar 40% to S$246.3 million for the year. Tenants’ sales and shopper traffic have both improved in all its markets except Malaysia. Looking at its net property income (NPI), all markets displayed strong growth in NPI of at least 11.5% for the year, with Japan having the best display with its 46.3% growth in NPI to JPY2,689 million.

In the year, CapitaMalls Asia launched four new malls, namely CapitaMall Meilicheng and CapitaMall Jinniu in Chengdu, China, and Westgate and Bedok Mall in Singapore.

For more of CapitaMalls Asia’s financials for the 12 months ended 31 Dec 2013, its revenue under management increased by 17% to S$2.11 billion. This is mainly due to higher contribution from CapitaMall Trust and the opening of more malls in China.

The company ended the year with earnings per share of S$0.154, an increase of 10% from last year as its profits grew 9.9% to S$600 million. CapitaMalls’ net tangible assets per share also improved by 10% to S$ 1.84.

The balance sheet of CapitaMalls Asia still remains strong, despite the net debt to equity ratio increasing slightly from 21% to 22%. The company’s cash holdings ended the year above S$ 1 billion, up from S$675 million a year ago.

Dividends and valuation

As my fellow contributor Chong Ser Jing pointed out in his article regarding a possible dividend increase in CapitaMalls Asia, the company did propose a higher final dividend of 1.75 Singapore Cents, bumping up its full year dividend from 3.25 Singapore Cents to 3.5 Singapore Cents.

Shares of CapitaMalls are currently exchanging hands at S$1.785 apiece and are valued at a price-to-book and price-to-earnings ratio of 1.0 and 11.6 respectively. The company’s also fetching a dividend yield of 2.0% at that price.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.