CapitaLand Investment (9CI) H2 2024 earnings summary

Executive summary

• Total PATMI surged 165% year-over-year to S$479 million, driven by portfolio gains, improved profitability, and reduced non-cash impacts, while operating PATMI declined 10% due to divestments and lower one-off contributions.

• Funds under management (FUM) grew to S$117 billion, up S$18 billion year-over-year, supported by organic growth, strategic M&A in Australia and Japan, and strong fundraising traction.

• Accelerated capital recycling with S$5.5 billion in divestments, building up dry powder and expanding growth capacity to S$7.4 billion.

• Fee income-related business revenue grew 9% year-over-year, now comprising 62% of operating PATMI, reflecting a successful shift to a recurring fee-driven model.

• Proposed total dividend of 18 Singapore cents per share, including a special dividend in specie, and executed S$358 million in share buybacks.

Financial highlights

• FUM increased to S$117 billion from S$99 billion in FY 2023, with 8 new funds and S$2.5 billion in listed fund acquisitions.

• EBITDA for FY 2024 was S$1,421 million, up 29% year-on-year, with improvement driven by reduced fair value losses in China.

• Net portfolio gains from divestments totaled S$230 million, with gross divestments of S$5.5 billion at a 5% premium.

• Lodging management opened 11,700 units in 54 properties, with RevPAU up 6% year-on-year and double-digit growth expected to continue.

• Margins improved to about 50%, supported by scale in lodging and increased activity in private and listed funds.

Outlook and guidance

• Targeting S$200 billion FUM by FY 2028, focusing on both organic and inorganic growth.

• Focus remains on scaling recurring income, leveraging strong balance sheet and dry powder of S$4–7.4 billion for further investments and M&A.

• Plans to increase annual dividend to a minimum of 50% of cash PATMI, reflecting confidence in future cashflow.

• India is a key growth market, with plans to scale up platforms in logistics, data centers, and business parks.

• Intends to recycle more China assets and drive asset-light growth in fund business.