CapitaLand’s 3Q16 PATMI increased 28.4% YoY to S$247.5m while operating PATMI similarly rose 54.5% YoY to S$251.8m mostly due to stronger contributions from the group’s residential development segments in Singapore and China, its investment properties in Singapore, China and Malaysia as well as newly acquired serviced residences.

In terms of the topline for the quarter, we similarly saw group revenue increase 27.7% to S$1,373.7m given stronger contributions from its Singapore and Chinese development projects, and higher rental income from its investment properties.

Overall, we judge this quarter’s results to be in line with expectations and we like the fact that the company has delivered a balanced set of results in an uncertain environment due to its diversified asset portfolio and robust recurring income streams.

Maintain BUY with an unchanged fair value estimate of S$3.68.

Source: OCBC Research - 9 Nov 2016