Capitaland released a respectable set of results for 2Q2018. The following are excerpts from various equity research houses on the company’s performance.

CapitaLand reported 2Q18 net profits of S$605.5m, EPS of 14.4cts, +5.1% YoY. Core net profit of S$196.0m (-5.6% YoY) was below our expectation of S$226m, due mainly to lower residential profit recognition.

Result highlights. Core profits was underpinned by higher contribution from newly acquired or opened malls and offices. Active asset recycling, with S$1.8bn of new investments and S$3.1bn of divestments (which surpassed the S$3bn target for this FY). Net revaluation gains lifted book value +4.1% to S$4.52, implying 0.69x P/BV.

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ROE Tracking at 10%, annualized. Achieving its S$3bn full year divestment target within 1H, an elevated pace of asset recycling drove 1H18 ROE to 5%. NAV grew 4% HoH to S$4.52/shr, as revaluation gains added 2% …