CapitaLand Investment (9CI) H1 2024 earnings summary

Executive summary

• Fee-related earnings rose 8% year-on-year in 1H 2024, now comprising 63% of operating PATMI, driven by private funds, lodging, and commercial management, while real estate investment business declined due to higher interest expenses and FX losses.

• Operating PATMI declined 14% year-on-year to S$296 million, with total PATMI at S$331 million, partially offset by higher portfolio gains.

• S$1.7 billion in gross divestments and S$1.6 billion in effective divestments year-to-date, supporting capital recycling and redeployment.

• Strategic focus on asset-light growth, expanding funds under management, and reducing China USD exposure while increasing RMB-based funds.

• Commitment to a diversified portfolio, with no single market outside Singapore to exceed 20% of capital allocation.

Financial highlights

• Total revenue for 1H 2024 was S$1,365 million, up 1% year-on-year, with EBITDA rising 8% to S$819 million.

• Fee income-related business revenue grew 8% year-on-year, led by 12% growth in private funds management and 22% in commercial management.

• Operating PATMI was S$296 million (down 14% YoY); total PATMI was S$331 million (down 6% YoY).

• Interest cost rose to 4.1%, with 61% of debt at fixed rates and average debt maturity of 2.8 years.

• Share buybacks totaled S$311 million (114M shares), about 40% of the annual mandate.

Outlook and guidance

• Confident in achieving or exceeding the S$3 billion divestment target by year-end, with increased activity in listed and private funds, M&A, and new fund launches, especially in Asia ex-China.

• Data center FUM expected to grow from S$6 billion to over S$10 billion, with expansion in Asia and Europe.

• Dividend of S$0.12 per share considered sustainable, with flexibility for future increases.

• ESG integration and execution of the 2030 Sustainability Master Plan are ongoing priorities.