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QuestionsCategory: Investor PsychologyCapitaland operating PATMI
Gloria asked 6 months ago

Hi Victor
Noted that capitaland reported a net loss of 1.6 bil in AY2020 and generated $770mil in operating PATMI.  Just wondering what the formula for operating PATMI is, and how is this figure derived?

thanks!

Gloria replied 5 months ago

Hi Victor, not sure why but I can’t view your answer to the question.

Victor Chng replied 5 months ago

Hi Gloria,

Can you check whether you can see the comment now?

Gloria replied 5 months ago

Yes I can now, thank you!

1 Answers
Victor Chng answered 6 months ago

Hi Gloria,

The operating profit of Capitaland is $179.8m while the net loss is $1.6b. The operating profit is derived from the total revenue minus total operating expense. For Capitaland, their operating profit include fair value gain/loss of investment properties.

In Capitaland case, the low in operating profit was due to net fair value loss from investment properties (Page 242 of annual report). The figure is a paper loss which does not affect their cash flow.

Gloria replied 5 months ago

Thanks so much for responding. I was curious how the figure of 770 mil was derived, was not able to arrive at the figure/ sight the value in the FS.

Victor Chng replied 5 months ago

Hi Gloria, The operating profit figure of $770m is derived from how the management viewed the business. It is hard for us to derive the exact figure unless you email the investor relations to ask about it.

Gloria replied 4 months ago

ic, no wonder I couldn’t find the figure from the FS. Thanks for the replies, Victor!

Victor Chng replied 4 months ago

Welcome Gloria :)