Singapore’s biggest developer posts full-year loss

SINGAPORE: Capitaland Ltd, Singapore’s largest developer, posted a record full-year loss after writing down the value of some investment properties and residential projects during the pandemic.

The S$1.57 billion (Us$1.2bil) loss was its first since 2001, chief financial officer Andrew Lim told analysts and reporters yeterday.

Revaluation and impairment costs totaled S$2.5 billion, the company said in a statement.

Singapore’s developers are still reeling from the health crisis, which has battered the property market, particularly office and hospitality assets. Still, chief executive officer Lee Chee Koon struck an optimistic tone, saying the worst is over as Covid-19 infections show signs of falling in key markets.

“We are quietly confident,” Lee said at a virtual briefing on the results. Business partners are “talking about investing for the future.”

He singled out Singapore and China, where Capitaland has major exposure. “The two countries have managed the crisis relatively a lot better than other markets,” Lee said.

It’s been a tough year for Singapore developers. Prime grade office rents in the Raffles Place and Marina Bay precincts declined about 10% in 2020, and early termination of leases continued to rise in the fourth quarter.

Property consultancy Knight Frank foresees lower net new demand for office space in Singapore given that some companies have adopted a rotational remote working approach.

Citigroup Inc and Mizuho Financial Group Inc are among financial firms that have cut office space in the city-state, in part due to the success of working from home.