Company Reports

CapitaLand Investment's first-half 2026 net profit rose 14% year on year to SGD 327 million on higher event-driven fees from its listed and private funds platforms and gains from asset recycling.

CapitaLand Investment is a real estate investment management company with SGD 128 billion in total funds under management as of June 30, 2026. Currently, the firm generates most of its income from direct real estate investment, where it invests in a portfolio of office, retail, lodging, logistics, business parks, and data center assets for rental income. CLI also collects management fees and distribution income from the listed vehicles and private funds it manages. Around 60% of the FUM comprises listed REITs such as CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT, and CapitaLand Ascott Trust. CLI has set a target to achieve SGD 200 billion of FUM by 2028, up from SGD 99 billion at the end of 2023.

CapitaLand Investment's first-quarter 2026 revenue fell 2% year on year because of the absence of contribution from the exited and deconsolidated Synergy platform following its merger with SilverDoor in August 2025. The decline was partly offset by higher fee income.

CapitaLand Investment's 2025 earnings per share fell 69% year on year, driven by larger revaluation losses in China and the absence of one-off gains from the ION Orchard and India business park divestments recorded in 2024. This was partially offset by stronger operating profit.

CapitaLand Investment is a real estate investment management company with SGD 125 billion in total funds under management as of Dec. 31, 2025. Currently, the firm generates most of its income from direct real estate investment, where it invests in a portfolio of office, retail, lodging, logistics, business parks, and data center assets for rental income. CLI also collects management fees and distribution income from the listed vehicles and private funds it manages. Around 60% of the FUM comprises listed REITs such as CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT, and CapitaLand Ascott Trust. CLI has set a target to achieve SGD 200 billion of FUM by 2028, up from SGD 99 billion at the end of 2023.

CapitaLand Investment is a real estate investment management company with SGD 117 billion in total funds under management as of June 30, 2025. Currently, the firm generates most of its income from direct real estate investment, where it invests in a portfolio of office, retail, lodging, logistics, business parks, and data center assets for rental income. CLI also collects management fees and distribution income from the listed vehicles and private funds it manages. Around 60% of the FUM comprises listed REITs such as CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT, and CapitaLand Ascott Trust. CLI has set a target to achieve SGD 200 billion of FUM by 2028, up from SGD 99 billion at the end of 2023.

CapitaLand Investment's year-to-September 2025 revenue fell 25% year on year due to the deconsolidation of CapitaLand Ascott Trust and a 12% decline in revenue from its real estate investment business, partly offset by a 7% increase in fee-related revenue.

CapitaLand Investment is a real estate investment management company with SGD 117 billion in total funds under management as of June 30, 2025. Currently, the firm generates most of its income from direct real estate investment, where it invests in a portfolio of office, retail, lodging, logistics, business parks, and data center assets for rental income. CLI also collects management fees and distribution income from the listed vehicles and private funds it manages. Around 60% of the FUM comprises listed REITs such as CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT, and CapitaLand Ascott Trust. CLI has set a target to achieve SGD 200 billion of FUM by 2028, up from SGD 99 billion at the end of 2023.

CapitaLand Investment's operating profit fell 12% year on year due to the loss of contributions from divested assets, weaker fund performance and transaction fees, and the absence of a one-off tax writeback that benefited results in 2024.

We retain our fair value estimate of SGD 3.30 per share for CapitaLand Investment, or CLI, following its first-quarter business update, which contained no major surprises. While the shares remain undervalued, we continue to prefer Keppel Ltd as our top pick among asset managers, as we believe it is better positioned to capitalize on strong secular growth trends in the infrastructure and data center markets.

CapitaLand Investment’s, or CLI’s, second-half 2024 net profit after tax and minority interest, or PATMI, improved to SGD 148 million from a loss of SGD 170 million a year earlier. Revaluation gains in India and Singapore have helped to offset revaluation losses in China and the United Kingdom. Shares increased by 4.8% on Feb. 28, given the positive surprise of a special dividend of SGD 0.06 per share, on top of its unchanged common dividend of SGD 0.12 per share. The special dividend comprises 0.031 CapitaLand Integrated Commercial Trust units per CLI share. The group will revise its dividend policy to a minimum of 50% of cash PATMI, up from 30%. However, we do not expect the change to result in a higher dividend, as the current dividend payout ratio is already at 81% of cash PATMI. Overall, the performance was in line with our expectations, and we keep our fair value estimate of SGD 3.30 per share. While the shares remain undervalued, our top pick for asset managers continues to be Keppel Ltd, as we believe it is well-positioned to capitalize on strong secular growth trends in the infrastructure and data center markets.

CapitaLand Investment, or CLI, is a real estate investment management company with SGD 136 billion in total assets under management as of Dec. 31, 2024. Currently, the firm generates most of its income from direct real estate investment where it invests in a portfolio of office, retail, lodging, logistics, business parks and data center assets for rental income. CLI also collects management fees and distribution income from the listed vehicles and private funds it manages. Around 60% of the funds under management, or FUM, comprises listed REITs such as CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT, and CapitaLand Ascott Trust. CLI has set a target to achieve SGD 200 billion of FUM by 2028, up from SGD 99 billion at the end of 2023.

CapitaLand Investment’s, or CLI’s, third-quarter 2024 business update was slightly above our expectations. Cumulative nine-months group revenue of SGD 2.1 billion made up 79% of our 2024 revenue estimate as revenue from its real estate investment business fell less than our forecast. We raise our near-term revenue assumptions for its real estate investment business, which leads to 5.5%-6.1% higher earnings per share estimates for 2024-25. Our long-term forecasts are largely unchanged, and our fair value estimate of SGD 3.30 per share remains the same. We think the units are currently undervalued and believe that weaknesses in its China portfolio have been priced in. Given the start of the interest rate cut cycle, we expect the operating environment for the group’s fund management business to improve and drive medium-term earnings growth.

CapitaLand Investment, or CLI, is a real estate investment management company with SGD 134 billion in total assets under management as of June 30, 2024. Currently, the firm generates most of its income from direct real estate investment where it invests in a portfolio of office, retail, lodging, logistics, business parks and data center assets for rental income. CLI also collects management fees and distribution income from the listed vehicles and private funds it manages. Around 60% of the funds under management, or FUM, comprises listed REITs such as CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT, and CapitaLand Ascott Trust. CLI has set a target to achieve SGD 200 billion of FUM by 2028, up from SGD 99 billion at the end of 2023.

We maintain the fair value estimates of Swire Properties, CapitaLand Investment, Mapletree Pan Asia Commercial Trust, or MPACT, and Link REIT after visiting their office and retail assets in Shanghai. We think China’s slowing economic growth remains a key headwind for consumer spending and business expansion. For retail malls, we note that vacancy rates for Shanghai downtown retail districts remain healthy at 5.4% as of third-quarter 2024, according to Cushman & Wakefield. This should provide some support for market rents that are being weighed down by weak retail sales performance and supply of new retail malls, albeit in the secondary retail areas. On the other hand, office rents remain soft in Shanghai given the elevated central business district vacancy rate of 16.6% as of third-quarter 2024, according to Cushman & Wakefield. While the Chinese government is looking to revive its economy with a series of policy stimulus efforts, we think that business owners and consumers may still exercise caution until they are convinced of a durable economic recovery. For landlords and REITs with mainland China exposure, our preferred pick is Swire Properties that is trading at a 29% discount to our fair value. Swire Properties remains steadfast in its long-term plan to invest in China, allocating half its HKD 100 billion investment plan to China. We expect these projects to start contributing from 2026, with the bulk of it coming from 2027.

CapitaLand Investment, or CLI, is divesting its 50% interest in ION Orchard to its sponsored REIT, CapitaLand Integrated Commercial Trust, or CICT, for SGD 1.1 billion. The divestment will take the group’s year-to-date total capital recycling to SGD 3.6 billion, surpassing its annual capital recycling target of SGD 3 billion. Management shared that the divestment proceeds will be used to further diversify its portfolio across geographies and asset classes, as well as to establish new fund products to boost its fee-related income. Given that ION Orchard is a high-quality retail asset located in the heart of Singapore’s key retail district, Orchard Road, we are positive about this divestment as it allows the group to unlock value from the asset. In addition, CLI will continue to earn recurring fee income and retain some exposure to the mall’s performance through its 24% stake in CICT. To complete this acquisition, CICT is raising SGD 1.1 billion through an equity fundraising exercise. CLI has undertaken to fully subscribe to its portion in the preferential offering, underscoring its support for the trust. On the pricing front, we think the group is selling to CICT at a fair price. Based on the 7.1% gross yield shared by CICT’s management, we estimate that the net property income yield is around 5%, comparable with CBRE’s retail prime yield of 5.2% as of June 30, 2024.

CapitaLand Investment’s first-half 2024 performance was broadly in line with our expectation. Operating profit after tax and minority interest fell 14% year on year due to weaker contribution from its real estate investment business, slightly offset by higher fee income. We raised our share of results from associates and joint venture for the group’s newly raised funds and operating income forecasts to reflect higher portfolio gains from the group’s asset divestment and participation in its REITs distribution reinvestment plan. As a result, our earnings per share, or EPS, estimates for 2024-26 were raised by 8.0% to 11.4%. However, we lowered our fair value estimate to SGD 3.30 per share from SGD 3.50 after increasing our WACC to 6.9% from 6.6% to reflect the group’s exposure in China, India, and rest of Southeast Asia, which we estimate to contribute close to 50% of its assets under management. Based on current prices, we think the group is undervalued. However, our top pick for alternative asset managers is Keppel Ltd for its exposure to the more resilient infrastructure and connectivity space.

CapitaLand Investment, or CLI, is a real estate investment management company with SGD 134 billion in total assets under management as of June 30, 2024. Currently, the firm generates most of its income from direct real estate investment where it invests in a portfolio of office, retail, lodging, logistics, business parks and data center assets for rental income. CLI also collects management fees and distribution income from the listed vehicles and private funds it manages. Around 60% of the funds under management, or FUM, comprises listed REITs such as CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT, and CapitaLand Ascott Trust. CLI has set a target to achieve SGD 200 billion of FUM by 2028, up from SGD 99 billion at the end of 2023.

We retain our fair value estimate of SGD 3.50 per share for CapitaLand Investment after its in line first-quarter 2024 business update. We think the shares are undervalued currently but prefer narrow-moat ESR Group, an alternative asset manager that is trading at a deeper discount to our fair value estimate. We anticipate the elevated interest-rate environment will continue to be a near-term headwind for alternative asset managers, making it difficult for them to raise funds and scale up their business.

CapitaLand Investment, or CLI, is a real estate investment management company with SGD 134 billion in total assets under management as of Dec. 31 2023. Currently, the firm generates most of its income from direct real estate investment where it invests in a portfolio of office, retail, lodging, logistics, business parks and data center assets for rental income. CLI also collects management fees and distribution income from the listed vehicles and private funds it manages. Around 60% of the funds under management, or FUM, comprises listed REITs such as CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT, and CapitaLand Ascott Trust. CLI has set a target to achieve SGD 200 billion of FUM by 2028, up from SGD 99 billion at the end of 2023.