Singapore, August 11, 2023 -- CapitaLand Investment Limited (CLI) registered total PATMI for 1H 2023 of S$351 million, attributed to improved operating performance across most sectors even in the face of high interest rates, offset by lower portfolio gains compared to 1H 2022 as the cautious dealmaking environment slowed asset recycling transactions. CLI’s Operating PATMI2 stayed stable at S$344 million for 1H 2023, supported by higher earnings from the lodging business across all markets and lower operating expenses, partially offset by higher interest costs and the absence of event-driven performance fees from two private funds exited in 1H 2022.

Revenue of S$1,345 million for 1H 2023 was marginally lower year-on-year due to lower contribution from the Real Estate Investment Business (REIB), partially mitigated by higher Fee Income-related Business (FRB). The lower REIB revenue of S$932 million was due to loss of contribution from properties divested in 2022 and lower contribution from properties in China. FRB revenue grew 9% year-on-year to S$519 million, supported by stronger recurring fund management fees and higher fee-related earnings (FRE) from lodging management as well as contributions from new management contracts. 

EBITDA for 1H 2023 was S$757 million mainly due to lower portfolio gains from asset recycling, the absence of contribution from divested assets in 2022 and lower performance fees from funds. These were partially mitigated by improved performance from the lodging management business.

International Tech Park Chennai, Radial Road.

CapitaLand Investment management team speaking at the results briefing

Financial highlights

Notes in table:

1.    Including performance fees of S$31 million from funds in Vietnam and Singapore recognised under other operating income in 1H2022, FRB revenue grew by 2%

2.    Operating PATMI refers to profit from business operations excluding any gains or losses from divestments, revaluations, and impairments. 

3.    Portfolio gains comprise gains/losses arising from divestments, gains from bargain purchase or re-measurement on acquisitions and realised fair value gains/losses arising from revaluation of investment properties to agreed selling prices of properties. 

Ascott Dadonghai Bay Sanya in China.

As at 1H 2023, CLI’s funds under management (FUM) stood at S$89 billion. The Group continued to gain strong fundraising traction, attracting more than S$4 billion1 across its listed and private funds platforms. The Group’s listed funds platform also delivered steady operating performance with net property income improvements and good transactions momentum. With the continued rebound in international travel, the Group registered strong growth in fee income from lodging management and rental from lodging properties. 1H 2023 revenue per available unit increased 32% year-on-year to S$87, boosted by higher occupancy rates recorded from properties in all markets. With capital recycling picking up in 2Q 2023, CLI has made S$839 million in divestments as at YTD August 2023.

Mr Miguel Ko, Chairman of CLI, said: “CLI continues to build a resilient business that is strategically positioned and well-balanced across diverse sectors, geographical markets and income streams.”

"With our strong ground presence and deep operating experience in our core markets of Singapore, China, and India, and our focus markets of Australia, Japan and Korea, we believe that our diversified portfolio, robust balance sheet, and disciplined capital management will position us well to manage risks and uncertainties in the external macroeconomic environment.”

Mr Miguel Ko, Chairman of CLI

Mr Miguel Ko, Chairman of CLI

Mr Lee Chee Koon, Group CEO of CLI, said: “Despite a challenging environment, we have continued to press ahead and execute well on our priorities, keeping our long-term goals in mind and making sure we do right by our investors across the various vehicles. We are pleased to have launched a new India business park development fund and attracted additional capital for our CapitaLand Open End Real Estate Fund (COREF) and CapitaLand China Opportunistic Partners (CCOP) Programme."

Mr Lee Chee Koon, Group CEO of CLI

"Looking ahead, we expect the pace of capital recycling to improve. We will remain disciplined and selective in our acquisitions to ensure we continue to deliver consistent and high-quality returns. We will also intensify our efforts to raise domestic capital to support our China business, further diversify our portfolio and scale up our business globally.”

Mr Lee Chee Koon, Group CEO of CLI

Commitment to sustainability

CLI continues to build a resilient and resource-efficient real estate portfolio in line with its commitment to achieve Net Zero emissions for scope 1 and 2 by 2050. CLI recently refreshed its 2030 Sustainability Master Plan3 with elevated targets, including a 46%4 reduction in carbon emissions, increase in renewable energy use to 45%, and reduction of waste intensity by 20%. CLI also included new social targets focused on social impact, human capital development and employee wellness, including having at least 40% female representation in senior management5 and an increased focus on governance.

----------------------------------
[1] S$4.1 billion has been raised as at 10 August 2023. This excludes the S$103 million preferential offering by CapitaLand Ascott Trust (CLAS) announced on 3 August 2023, which is expected to complete within 3Q 2023.
[2] Operating PATMI refers to profit from business operations excluding any gains or losses from divestments, revaluations, and impairments
[3] Targets in the refreshed 2030 SMP were set using 2019 as a base year
[4] Targets are validated by the Science Based Targets initiative (SBTi) for 1.5°C scenario, in line with the goals of the Paris Agreement.  
[5] These targets are intended to reflect the organisation-wide goals set by CLI on a group basis, and are intended  to be implemented subject to and taking into account (i) fair and equitable employment practices and principles under applicable laws and market practice and (ii) the business and operational needs of the company and the organisation, as applicable.