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 growth in private funds, lodging, and commercial management, while real estate investment business declined due to higher interest expenses and FX losses.

• Gross divestments reached S$1.7 billion ($1.7 billion), supporting asset-light growth and capital redeployment, with a strategic focus on expanding funds under management and reducing China USD exposure.

• Operating PATMI declined 14% year-on-year to S$296 million, while total PATMI fell 6% to S$331 million, mainly due to higher interest costs and FX impacts.

• Commitment to a diversified portfolio, with no single market outside Singapore to exceed 20% of capital allocation, and ongoing asset-light transition.

• Strategic partnerships and new fund launches, including RMB-based funds in China and collaborations such as with Chelsea FC, support future growth.

Financial highlights

• Revenue for 1H 2024 was S$1,365 million ($1,365 million), up 1% year-on-year, with EBITDA up 8% to S$819 million, supported by portfolio gains and fee-related business growth.

• Fee-related business revenue grew 8% to S$561 million, led by 12% growth in private funds management and 22% in commercial management.

• Operating PATMI was S$296 million, total PATMI S$331 million; basic EPS at 6.5 cents, NAV per share at $2.68.

• Finance costs increased 8% to $259 million, with implied interest cost at 4.1%; net debt/equity ratio at 0.59.

• Net cash from operating activities was $226 million; net cash from investing activities was $779 million, mainly from divestments.

Outlook and guidance

• Confident in achieving or exceeding the S$3 billion divestment target for 2024, with focus on scaling funds under management to S$200 billion and lodging revenue to S$500 million by 2028.

• Strategic priorities include expanding in Southeast Asia, India, Australia, Japan, and South Korea, and pursuing M&A opportunities.

• Data center FUM expected to grow from $6 billion to over $10 billion, with disciplined expansion planned.

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

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