CapitaLand Investment (9CI) H2 2025 earnings summary

Executive summary

• Operating PATMI rose 6% year-on-year to S$539 million, reversing a multi-year decline, driven by higher listed funds contributions, lower interest costs, and reduced operating expenses.

• Funds under management (FUM) increased 7% to S$125 billion, supported by record fundraising, organic growth, and strategic investments in SCCP and Wingate.

• Total PATMI dropped 70% year-on-year to S$145 million due to higher China revaluation losses and lower portfolio gains.

• Fee-related revenue increased 6% to S$1.23 billion, with strong growth in private and listed funds, and digital innovation delivered over S$12 million in incremental revenue and S$5 million in cost savings.

• Transitioned further to an asset-light model, with significant divestments, especially in China, and increased focus on recurring fee income.

Financial highlights

• Core operating profit reached S$539 million, up 6% year-on-year, driven by listed and private fund growth.

• Fee income grew 6%, with private funds up 24% and listed funds up 8%; commercial management margins improved.

• Portfolio gains fell 80% to S$45 million due to fewer large divestments and higher China losses; China asset sales were at a 13% average discount to book value.

• China asset revaluations down S$545 million, offset by gains in Singapore and India; revaluation/impairment losses increased 68% year-on-year.

• Interest costs declined from 4.4% to 3.9%, with further modest savings expected.

Outlook and guidance

• Targeting S$200 billion FUM by FY2028, with continued mid-single-digit core operating profit growth and double-digit fund management revenue growth.

• Plans to accelerate capital recycling and divestments, especially in China, to optimize the portfolio and reduce balance sheet exposure.

• Confident in surpassing last year’s fundraising, with strong pipelines in private funds, credit, and new regional flagship products.

• Lodging business expected to reach S$500 million in fee income as new signings open, with EBITDA margin targeted above 30% by 2028–2029.

• Continued investment in AI and technology to drive productivity and cost savings.