CapitaLand Investment (9CI) Q2 2025 earnings summary

Executive summary

• Targeting S$200B FUM by 2028, with accelerated growth in private credit, lodging, logistics, and infrastructure, supported by strategic acquisitions of SCCP and Wingate.

• Platform scale expanded to S$117B FUM (+17% YoY), with strong capital formation (S$2.6B equity raised YTD, up 1.3x YoY) and S$3.2B deployed (+79% YoY).

• Listed funds platform grew to S$71B FUM, with robust recurring income, positive rental reversions, and new listings, especially in Japan and India.

• Lodging management and commercial management platforms expanded, with India and APAC as key growth markets; RevPAU up 5% YoY.

• Macro uncertainty persists, but digital upgrades and platform expansion drive efficiency and resilience.

Financial highlights

• Operating PATMI down 12% YoY due to divestments, lower fund performance, and absence of prior year tax write-back; revenue fell 24% YoY to $1,040M.

• Fee income-related business contributed 60% of operating PATMI, with recurring fees up 5% YoY; total revenue for 1H 2025 was S$1,040M.

• Real estate investment income stabilized by rapid redeployment and interest savings, offsetting expected earnings gap.

• Deconsolidation of CapitaLand Ascott Trust led to a 20%+ revenue drop, but no bottom-line impact.

• Finance costs decreased 38% to $161M due to lower borrowings and divestments; interest cost reduced from 4.4% to 4.0%.

Outlook and guidance

• Confident in stronger H2 performance, with transaction pipeline and portfolio gains expected from India and China divestments; targeting $500M+ in China asset divestments.

• Strategic focus on scaling thematic products in APAC, India, and China, with C-REIT listing targeted by 4Q 2025.

• Private credit to become a material contributor, aiming for $20B–$30B AUM and 10–12% returns.

• S$50M cost savings targeted via organisational streamlining and AI-driven productivity.

• Progress remains on track toward the 2028 target of S$200B in Funds Under Management.