CapitaLand Investment (9CI) Status Update summary

Strategic Growth, Transformation, and Diversification

• Targeting S$200 billion FUM by 2028, leveraging Asia-Pacific strengths and expanding into the U.S., Japan, Korea, Australia, and India, with reduced reliance on China.

• Growth driven by demographics (aging, wellness, lodging), disruption (supply chain, private credit, logistics), and digitalization (data centers, renewables).

• Recent acquisition of a 40% stake in SC Capital Partners strengthens presence in Japan and adds S$8–11 billion in FUM, making Japan the third largest FUM country.

• Emphasis on building operational platforms and partnerships in lodging, logistics, and data centers, with high conviction in these sectors.

• Transitioned to an asset-light, fee-income model, scaling FUM by leveraging real estate expertise and optimizing capital efficiency.

Financial Targets, Capital Deployment, and Shareholder Returns

• Targeting over S$1 billion in operating profit by 2028, with 60–70% from fee business and the rest from invested capital.

• Plan to reduce sponsor stakes in listed REITs and private funds to 15–20% over four to five years, freeing up capital for growth and M&A.

• Capital deployment prioritized for growth opportunities, followed by consistent dividends and share buybacks.

• Operating profit focus due to lower expectations for fair value and divestment gains; cost savings of S$50–75 million targeted through streamlining.

• Strong balance sheet and capital efficiency enable self-funding of FUM growth and support expansion and shareholder returns.

Operating Performance and Earnings

• Increased FUM by S$26 billion and fee-related earnings by 7% since listing.

• Lodging management FRE up 96%, with over 34,300 units opened and RevPAU up 48%.

• Commercial management FRE up 19%, with NLA under management up by ~26 million sqft.

• Asia Pacific's largest REIT platform with S$35 billion market cap and potential for new listings in Australia, China, and India.

• Recycled S$24 billion in capital and raised S$17 billion since 2021, with FUM growing ~30% to S$113 billion.