CapitaLand Investment 9M revenue dips 3% to S$1.5b
CapitaLand Investment reported a 3 per cent drop in total revenue to S$1.5 billion for the first nine months of its financial year. The decline came despite a 15 per cent growth in its fee-related business over the same period.
The asset manager’s overall revenue decrease was driven by a 23 per cent fall in contributions from its real estate investment business. That segment’s revenue fell to S$580 million, from S$753 million a year earlier. The drop was mainly due to the absence of revenue following asset sales and deconsolidations, CLI stated in a business update.
The impact was partially offset by contributions from the One iPark development-for-sale assets, the company noted.
Fee-Related Revenue Shows Strong Growth
In contrast, CLI’s fee-related revenue increased to S$1.04 billion. This growth was fueled by its listed and private funds management businesses. Listed funds management revenue rose 30 per cent year-on-year to S$336 million, boosted by stronger recurring and event-driven fees.
Private funds management revenue saw an even larger increase, climbing 32 per cent to S$133 million. This was driven by higher contributions from its credit business and SC Capital Partners, along with increased performance fees. Commercial and lodging management revenues also saw modest gains, rising 8 per cent and 1 per cent respectively.
China Expansion and Capital Activity
The company is advancing plans for its second China commercial real estate investment trust (C-Reit). CapitaLand Commercial C-Reit is now targeted for listing by the end of 2026, subject to market conditions. The Reit will be seeded with Raffles City Shenzhen and CapitaMall Fucheng, which have a combined appraised value of about 4.8 billion yuan.
Separately, CLI launched the 1.2 billion yuan China Rental Housing Fund I, its third sub-fund under its RMB Master Fund series. The group also continues to advance the monetisation of assets held by China AssetCo through platforms like C-Reits, private Reits, and renminbi-denominated funds.
CLI remained active in capital markets between January and early November. It raised about S$4.3 billion in equity across its listed and private funds. Over the same period, it deployed S$9.6 billion in assets and divested S$5.7 billion worth of properties. Its net debt-to-equity ratio stood at 0.46 times at the end of September, with an implied borrowing cost of 3.5 per cent per annum, down from 3.9 per cent. Operating cash flow rose to S$721 million for the nine-month period, from S$646 million a year earlier. Shares of CLI ended Tuesday flat at S$2.38.
