Link: https://links.sgx.com/1.0.0/corporate-announcements/AMXJ9PSDHYO053RX/9d1f50f1140a0358464cfe60e0b343a302649200fe18397ef2d0169313cea655

Summary:

• Macro & Capital Market Overview:

  • Macro uncertainty continues due to geopolitical tensions and trade policy shifts; global M&A activity is subdued, but capital deployment is expected to pick up in 2H 2025.

  • CapitaLand Investment (CLI) deployed S$3.2B year-to-date (up 79% YoY), raised S$2.6B in equity (+1.3x YoY), and recycled S$913M of capital.

  • The cost of debt was reduced to 4.0% (from 4.4%), supported by broad easing in interest rates.

  • Total Funds Under Management (FUM) stand at S$117B (+17% YoY), integrating new platforms SCCP and Wingate for expanded reach in private credit and opportunistic investment.

• Fund Performance & Platform Strength:

  • Listed FUM: S$71B (+16% YoY); plans for CapitaLand Commercial C-REIT listing in Shanghai by end-2025 to further increase FUM.

  • Fee income from listed and private funds remain robust, with recurring fee business now comprising 60% of operating profit—CLI targets over 70% in fee revenue.

  • CLI's APAC listed fund platform continues to grow, with positive rental reversions and high occupancies (≥90%).

• Business Drivers & Segmentation:

  • Strong expansion in lodging and living, logistics, and private credit: Equity raised for private funds up 29% YoY.

  • Strategic focus on APAC, especially India (logistics, data centres, and living), Australia, Korea, and Japan.

  • Lodging: Revenue per available unit (RevPAU) up 5% YoY in 1H 2025, driven by better occupancy and higher rates in Japan, Korea, and improved hotel demand in Europe.

  • Commercial management maintains steady contribution; office and retail occupancy rates above 90% in core markets.

• Financials & Resilience:

  • 1H 2025 revenue: S$1,040M (flat YoY); EBITDA S$581M (down 12%, impacted by previous deconsolidation of CapitaLand Ascott Trust).

  • Portfolio operating PATMI fell 12% YoY to S$260M on lower divestment gains and one-off items but remains anchored by stable fee income.

  • CLI maintains S$6B debt headroom (net debt/equity 0.46x, avg debt maturity 3.2 years), with ongoing cost rationalisation and debt optimisation.

  • Funds recycling and reduced sponsor stakes ongoing to free up more capital for growth (targeting sponsor stakes of 15-20% by 2028).

• Outlook & Strategy:

  • Focus on capturing synergies from SCCP and Wingate, expanding APAC funds, and accelerating deployment in thematics like lodging, logistics, self-storage, and private credit.

  • Pursuing balance sheet-light strategies, new REIT listings, and bolt-on acquisitions to reach S$200B FUM by 2028.

  • Integration of ESG and AI across fund management and asset operations for productivity and sustainability gains.

  • CLI remains strategically positioned for resilience and growth amid global uncertainty, with APAC set to drive expansion.

TL;DR: CapitaLand Investment showcased broad-based growth, robust capital management, and accelerated funds deployment in the face of volatile global markets, with recurring fee income becoming a major profit driver and APAC as the engine for future expansion.