CapitaLand Investment Limited (CLI): 3Q 2025 Business Update – Key Highlights for Investors

Steady Growth and Disciplined Execution

CLI reported total revenue of S\$1.568 billion for the nine months ended September 2025. The growth was driven by a 7% increase in fee-related revenue to S\$882 million, mainly due to higher event-driven fees from listed funds and contributions from new funds. However, real estate investment revenue declined to S\$753 million, reflecting the deconsolidation of CapitaLand Ascott Trust (CLAS) and divestments of certain assets.

Fundraising Momentum and Portfolio Optimisation

• Total equity raised by CLI’s listed and private funds reached S\$3.7 billion year-to-date, with private funds accounting for S\$2.1 billion.
• CLI is advancing its second and third series funds, including Ascott Lodging II, Asia Credit II, and India Logistics.
• CLI’s China RMB Master Fund series continues to expand, with the China Business Park RMB Fund IV closed and a new retail-focused sub-fund planned for 4Q 2025.
• Listed funds raised S\$1.6 billion in equity, supporting acquisitions and debt repayments.
• CLI monetised S\$2.2 billion YTD, with approximately 30% from its balance sheet and S\$0.5 billion from China, including the divestment of Dalian Ascendas IT Park.
• CLI continues to optimise its interest in China Business Park RMB Fund III through third-party capital partnerships, supporting capital-efficient growth.
• A major price-sensitive event was the successful listing of CapitaLand Commercial C-REIT (CLCR) in September 2025, reinforcing CLI’s RMB-for-RMB strategy and strengthening its listed funds business.

Revenue Breakdown and Segment Performance

Fee-related Business now accounts for 54% of total revenue, overtaking the Real Estate Investment Business (REIB), which contributed 46%.

• Listed Funds Management and Private Funds Management saw substantial growth in fee revenue, with Listed Funds Management up 18% year-on-year.
• Commercial Management and Lodging Management remained stable and grew modestly.
• Event-driven fees from listed funds were a significant contributor to this growth, highlighting CLI’s evolving business model towards more stable, recurring fee income.

Real Estate Investment Business (REIB) – Strategic Repositioning

REIB revenue declined 12% year-on-year, driven by strategic asset divestments and the deconsolidation of CLAS following the Synergy-SilverDoor merger and redeployment of Dalian Ascendas IT Park into a China domestic fund.

Major Milestone: CapitaLand Commercial C-REIT (CLCR) IPO

• CLCR was listed on 29 September 2025, marking China’s first international-sponsored retail C-REIT.
• The IPO was oversubscribed with record levels of subscription.
• 400 million IPO units issued at RMB5.718 per unit, but opened trading at RMB6.840 – approximately 20% above IPO price.
• The estimated distribution yield is 4.40% for FY2025 and 4.53% for FY2026.
• CLCR’s FUM reached RMB2.7 billion, anchored by CapitaMall Yuhuating and CapitaMall SKY+ as seed assets.

This strong IPO performance and positive trading debut is a major price-sensitive event for CLI’s shareholders.

Accelerating Growth of APAC’s Largest Listed Platform

• Improved capital access with S\$1.6 billion raised through equity and S\$2.3 billion through debt, up 26% year-on-year.
• Accelerated investment deployment of S\$1.6 billion by CLAR, and CICT’s S\$1.0 billion acquisition of a 55% stake in Grade A CapitaSpring.
• CLAR, CLCT, and CLINT recycled S\$638 million in 3Q 2025, more than doubling capital recycling activities year-on-year.
• Total listed funds FUM reached S\$73.6 billion, with portfolio occupancy above 90% and average interest cost at 3.9%.

Private Funds: Improved Fundraising and New Initiatives

• Total equity raised by private funds increased 31% year-on-year to S\$2.1 billion.
• New funds include China Business Park RMB Fund IV (closed with RMB529 million equity), upcoming retail-focused sub-fund, APAC Credit Program II, India Logistics Funds, and Extra Space Asia self-storage fund.
• Final closing of CapitaLand Ascott Residence Asia Fund II (CLARA II) at S\$850 million in committed capital, with FUM of S\$2.1 billion.

Lodging Strategy Delivers Stable Performance

• Lodging Management fee-related revenue rose 5% year-on-year, driven by higher occupancy (+1 percentage point) and increased average daily rates (+1%).
• CLI signed approximately 13,500 units across 64 properties YTD Sep 2025, up from 10,200 units in 2024.
• Opened over 5,800 units across 35 properties YTD Sep 2025.
• The Citadines brand surpassed 200 properties globally, with over 35,000 units, of which 60% are operational.
• lyf Gambetta Paris opened as CLI’s third lyf-branded property in Europe, with five more in the pipeline.

Commercial Management: Stable Fees and Strategic Partnerships

• Commercial Management fee revenue remained steady at S\$281 million.
• CLI entered into a strategic partnership with Astaka for a RM1.2 billion GDV mixed-use development in Malaysia, providing retail advisory support.

Market Performance and Operational Achievements

• Occupancy rates remain robust across markets, with Singapore retail occupancy at 99%, office at 90%, and business parks/logistics/industrial at 98%.
• Positive rental reversions and tenant sales growth in Singapore and India, while China saw negative rental reversion but increased tenant sales and shopper traffic.
• CLI recycled assets into newly listed C-REIT and RMB Master funds and expanded its footprint in Australia, Japan, and Korea.
• Launched a data centre in Navi Mumbai and divested IT parks in Chennai and Hyderabad.

Capital Discipline and Financial Strength

• Net debt/equity ratio at a healthy 0.43x, with debt headroom of S\$6.4 billion.
• Average debt maturity of 3.2 years; 73% of debt at fixed rates.
• Implied interest cost at 3.9% per annum, with an interest coverage ratio of 3.8x.
• CLI generated operating cashflow of S\$646 million YTD Sep 2025.
• Sustainability financing reached S\$4.3 billion.

Loan Maturity and FUM Breakdown

• Total group debt at S\$7.5 billion with S\$6.6 billion in cash and undrawn facilities.
• Only S\$0.3 billion in on-balance sheet debt due in 2025, with refinancing plans in place.
• Total FUM reached S\$120 billion YTD, with a target allocation for China at 30-40% and business parks/logistics/industrial at 25-35% by FY2028.
• 72% of FUM is perpetual, with 100% of listed funds and 25% of private funds in perpetual structures.

Data Centre Expansion

• CLI’s global data centre business now has c.S\$6 billion in assets under management, with 27 data centre assets and 800MW gross power across Asia and Europe.
• CLI is vertically integrated, owning, managing, and operating data centres for major multinational customers.

Operational Metrics

• Retail occupancy rates remain high across all geographies, with positive rental reversion in Singapore, India, and USA, but negative in China, Korea, and UK/Europe.
• Shopper traffic and tenant sales growth in most markets, except for some negative reversion in China’s business park, logistics & industrial segments.
• Leasing momentum increased during the quarter, with 0.7 million sq ft renewed/newly leased in 3Q 2025.

Price-Sensitive and Shareholder-Relevant Items

• CLCR’s successful IPO and strong trading debut (+20% above IPO price) is a major development likely to have a positive impact on CLI’s share price.
• Significant capital raising and recycling activities across listed and private funds enhance CLI’s financial flexibility and growth potential.
• Strong growth in fee-related revenue signals a pivot towards a more stable, asset-light business model, which could positively influence investor sentiment.
• Expansion in data centres, self-storage, and new fund launches positions CLI for future growth in resilient and high-demand asset classes.
• Healthy balance sheet and liquidity provide CLI with the capacity to pursue further acquisitions and expansion.
• Robust global partnerships and investor base in private funds, including pension funds and sovereign wealth funds, signal continued confidence in CLI’s fund management platform.

Conclusion

The 3Q 2025 business update from CapitaLand Investment Limited demonstrates strong fundraising momentum, disciplined capital management, and a successful transition towards a fee-based, asset-light business model. The listing of CLCR in China with a significant premium to IPO price, alongside robust capital recycling and expansion in new asset classes, are likely to be price-sensitive and relevant for shareholders. Investors should closely monitor CLI’s progress on new fund launches, portfolio optimisation, and developments in high-growth sectors such as data centres and self-storage.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or an offer to buy or sell any securities. Investors should conduct their own research and consult with professional advisors before making investment decisions. Past performance is not indicative of future results. CLI’s forward-looking statements are subject to risks and uncertainties, and actual outcomes may differ materially.

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